hopschoko

Gold Doesn’t Care If It’s IN-flation or DE-flation

There are some people that believe that gold is the ultimate store of value (or confidence as Jeff Nielson points out in an earlier post). This means that its purchasing power will INCREASE during deflation; gold will buy more USD and the USD will buy more goods.

If you believe that the USD will purchase more gold during periods of deflation, then you must believe the USD is the ultimate store of value.

If your version of deflation appears and the purchasing power of the USD increases with respect to gold, what will the supply and demand look like with gold at $200, $300, $400 /oz.? There would have to be absolutely no demand for it.


On Jun 24 09:49 PM long roh wrote:

> More simply put, the price of gold goes down in nominal dollar terms
> in periods of deflation, but its purchasing power is maintained or
> goes up. To the extent the author states the latter, he is correct.
> But it is wrong to suggest (as I believe this article does) that
> you will make (fiat) money if you are long gold in a deflationary
> environment.

AIG Bonuses: The Tipping Point Toward Decisive Action?

When will we finally get rid of the Fed and all of the cronies associated with it? Who is Geithner working for?

The news that AIG will return the bonus money just shows how corrupt and incompetent the U.S. Treasury is. Unless the money is actually recovered from the employees, I don't see what difference this makes. The US taxpayer will receive $165 million and the value of its investment in AIG will decrease by $165.

The government should create a program where the employees that received bonus money can voluntarily return it to the US taxpayer. The names of all employees who decide to keep the bonus money will be made available to the public along with the amount that they received. I have a feeling that all $165 million would be back in our pockets by next week.

Why do I feel that the US taxpayer is getting screwed for additional day that Geithner remains in office? The plan is obvious to me. The Fed put in one of their own guys to represent the US taxpayer and try to squeeze out whatever is left. By the time Geithner is replaced, the damage will already have been done.

Why Economists Have Downgraded Obama to Bush-Plus

Perfect timing. What a great lead into The Obama Deception movie...

Everything You Ever (Or Never) Wanted to Know About the Fed

I'm disappointed with the lack of articles on here about why we should nationalize the Fed.

Jon Stewart on CNBC's 'Worthlessness'

> Who's the worst?.......Cabrera is my vote...

I would have to agree after I read her take on the tax evasion scandal (www.cnbc.com//id/29410...). She says, "Leave UBS alone. It is hypocritical on the part of our government to do this. Do you know which country is the biggest tax haven in the entire world? The United States!"

So individuals committing tax fraud in the US should not be punished because US banks provide the same services for non-US citizens? Why didn't CNBC mention this several years ago? At least this tip would've generated extra income for me.

Where Are Jim Rogers, Marc Faber and Doug Casey Investing Their Money in This Market?

RJA is an Elements ETN.

I doubt Rogers is foolish enough to purchase an ETN in this market, even if it tracks an index that he created.


On Mar 02 07:58 PM jeerio wrote:

> Rogers' timing is usually off at first, then he gets it right the
> second time he approaches, al la TBT. he also has his own listed
> ag fund, RJA, so that's what he buys when he buys ag.
>
> all these guys are right and all of them are wrong, usually just
> a timing thing which in times like these are mostly a matter of luck.
> i doubt even the most 'short-minded' would have said we'd be down
> 24% for the year on March 2nd.
>

Major Investors Piling into Gold

And you moved it into......? I'm sure a lot of us would like to know where you made your money since then.


On Feb 16 08:54 AM CLH wrote:

> After an eight year bull, I sold my gold stocks in March 2008. One
> year later gold has not moved. I dont like dead money.

Evidence That Big Inflation Is Coming

I follow what the inflationists are saying, but I have a hard time agreeing with them.

Didn't we just experience an inflationary period from approximately 1999 to 2006/7/8? What happened to house prices during that time? How about gold? Oil? Equities anyone?

I don't care how much peanuts, Cap'n Crunch, or a bunch of basil increased in price over that time if the most expensive items I will ever purchase (home, gold, oil, equities) skyrocketed.

How is the money supply the main indicator of inflation as long as the FRACTIONAL RESERVE system exists. How is this not considered by any inflationists. at. freaking. all.

Who needed the Fed to inject money into the system when the commercial banks were able to do it themselves? Now the Fed is plugging the black hole of debt that the fractional reserve system created. IMHO, the inflationary period has passed; now the creators of the latest inflationary period (commercial banks) need the money from the Fed to keep them on life support. Think about it, the money that the Fed is printing now should've been given to the banks from 1999 to 2006/7/8. That's when the inflation occurred, but anyone who was just paying attention to the money supply and not to the home/oil/gold/equity prices missed the party.

Gold is not decreasing in value because of the demise of other currencies. Paniced Brits, Icelanders, and Latvians are keeping it afloat (but so have my purchases...shhhh).