jumpingjoe

Global Liquidity Glut Bodes Well for Gold

Global liquidity glut?

I just viewed a chart overlaying gold and global liquity. from 1978 gold followed global liquidity. I tried to duplicate the chart here unsuccessfully for your viewing pleasure. From early 2008 thru mid 2009 the global liquidity is depicted as PLUNGING from 30% highs to negative 7-8% lows. The dive encompasses the full range of the channel of highs and lows occurring during the charts date range.

My first question, is global liquidity a glut or is this chart correct in depicting a dramatic decrease in global liquidity?

My second question is there any reason to believe that gold will not continue it course of following the liquidity, in which case as the charted liquidity has plunged I would expect gold to also plunge.

Is gold breaking away from its correlation with global liquidity? and if so what would cause that? Perhaps an over blown or premature fear of inflationary reaction to massive bond sales from the U.S.? Bond sales is deflationary. Massive bond sales is massively deflationary in that borrowing money from the world removes available funds from the global liquidity supply.

However I think that monetizing those borrowings should cause increasing money supply and hence increasing global liquidity glut.

Is it possible that the gold global liquidity correlation is disconnecting simply because of the recognition that the massive bond sales must be monetized and more than likely sooner than later?

2009: A Chinese Energy Acquisition Odyssey

Hey, you can certainly trust the upwardly moving charts of CEO and PTR


On Oct 17 05:17 AM bindlepete wrote:

> I wish I could trust Chinese accounting. Then I can't trust ours
> either.

Waiting for the Inverse Treasury ETF's Glorious Day

henarl: If you expect the bottom to fall out and you've sold calls how do you participate in the expected large move if you've limited your profits to the strike price?
On Apr 26 12:49 PM henarl wrote:

> By buying TBT and selling a one or two month covered call with a
> srike at or near the purchase price and repeating the process if
> the call expires worthless, or if you're exercised out, one can use
> TBT as a profitable short term trading position while waiting for
> the bottom to fall out of treasuries.

Atlas Pipeline: Hang in There

Does anyone think that the $600 million dollar write down of goodwill has any bearing on the companies financial statement? Back that out and the company is profitable! Am I missing something? How should this be interpreted? Are they selling the well performing assetts at a discount in order topay down debt only to be left with underperforming remaining assetts? Appalachia, Ozark. The cmpany is not forthcomming with information that is helpful for us to analyse the results of these pending sales. They bought a lot of things on leverage and increased their performance, the results as shown in the forrth quarter increases, Are they now dumping those assetts or other assetts at a loss. If so the result would indicate that the $600 million write down to goodwill reflects that they paid too much for those assetts and when they sell to deleverage then this writedown that nobody talks about and the company says is not real money will reflect by reducing the asset value of the company. Then after the assetts are sold the company no longer has the increased revenues that those sold assetts so positively reflect in the fourth quarter.
The question then becomes What is the value of the leftovers and what kind of revenues will the leftovers generate.
An after thought, The only way that thesale of assetts can be good for the company as a whole is if the assetts are sold at a gain. Only as a gain can the liabilities be reduced in any meaningfull way. If sold at a loss lthey are left with a higher proportion of debt. Under these market conditions is there anyone left who is willing to buy assetts at the pre collapse price or better? I doubt it. People and companies are looking for and finding extreme bargains now.
I wouldn't be surprised that at the stock price level anyone negotiating a purchase at anywhere near the pre collapse value could buy the whole company cheaper than the parts just buying th stock.