Trinitymaster

What Is Going On With Gold?

Gold is worthless except to those who will buy it from you; and they won't pay full value.

Gold only has real value when it is converted into currency.

Besides- we don't really know if the gold we invest in actually exists. What is to prevent a company from buying $100 million worth of gold, sell securities tied to it, and then sell the gold out the back door?

Can Deflation Be Avoided?

Chinese investors are already buying up California real estate. This proves that their currency is worthless. Everyone wants to invest in developed countries because it is only a matter of time before the emerging markets plummet into civil unrest.


On Jan 01 12:21 PM AlexR wrote:

> If there is severe deflation in rich countries, what would keep emerging
> markets, which historically have no qualms about printing money,
> from buying up the world?

U.S. Economy: Sinking in an Ocean of Newly-Minted Money

I said about the same thing in the comment section of another blog. Why won't people wake-up? Get out the crazy glue, people- Humpty Dumpty is teetering on the edge.


On Dec 22 02:28 PM constructe wrote:

> The velocity of money they are talking about is where the money supply
> was turned into CDS and CDO contracts and then spun around about
> 100 times from $400 billion to $40 trillion dollars over a course
> of 3 or 4 years. The reason you don't see it is called Base 1 which
> allowed banks to hide all their gambles off their balance sheet because
> basically they aren't really an investment. Duh.
>
> This was done to help banks leverage themselves out of the dot com
> mess. So you are 100% correct in your analysis. That's why there
> is no velocity of money now. Actually, there should be no money at
> all if you cleared all this ficticious accounting. It accounts for
> about the same as the net worth of all Americans.
>
> Now you know how hoplessly stupid the banking system got under Alan
> Greenspan and Bush Jr's administration that asked every regulator
> to take a 8 year nap.
>
> So now the Fed has been adding trillions to it's balance sheet to
> remake money to try to get some velocity going again. Unfortunately,
> since no one knows the total liability of the CDS and CDO contracts
> still, nor who owns them or owes them, no one feels very confident
> doing any loans. Would you?
>
> So the real question is, when will the banks, Fed, Treasury, and
> government own up to this derivatives mess and clean it up. Otherwise,
> we are in limbo no matter how much the fed inflates. There is a big
> hole in the baloon and it's going CDSSSSSSSSSSSSSSSSSSSS...