The Bernanke Agenda - It Isn't What You Think It Is [View instapost]
JS, one of the best articles on SA. This article should engage all investors as it speaks to the inflation/deflation debate. You invest very differently if you expect inflation from investments in deflation. So outcome on how this is resolved is very important. Although there has been much criticism of Bernanke, I have not seen anybody come out with better ways to deal with the dilemma he has to deal with. Except for the economist John Taylor. Many of his actions seem incomprehensible to me as they as the outcomes of his policies seem longterm detrimental to the economy, as he does not seem to see the obvious. Such as misallocation of investments, due to low interest rates, and bubbles in the bond and commodities markets. Driving investors to increase risk, which cannot end well. So, if his policies are detrimental to the economy, what is his end game? This article lays out an interesting scenario, however I hope he knows about the economic law of unintended consequences. The end game as I saw it, is we are in a deleveraging deflationary cycle, leading to depression, or worse civil unrest. To deal with this deflation the central banks and their masters, and governments will need to inflate, and not be able to stop until it is too late, leading eventually to hyperinflation. I still think the end game is in doubt. However you article got me to thinking, maybe we can get out of this with just a market crash, like 2000. I hope he can pull it off. He would be seen as a savior. There are no good solutions, just bad and worse. Remember geopolitical event may intervene, to push best layed plans of mice and men.
If he does solve the economic problems of US, send him to the EZ, who I think have even more intractable problems.
An article that makes you think, and adds a new perspective EXCELLENT
IT, good points about transparency , reality is not important, but your perception of reality is what is driving people's actions. Of course it all works out until you find out that you cannot really run through a brick wall. I love your points of education about comparison that does not work, unless you have a deep understanding of the situation.
Today's investors are like the cartoon character who runs off a cliff, and does not fall until he looks down, and of course a 500 foot fall and no damage. this seems to be an appropriate analogy, as most people who are not financially educated have no clue as what is about to happen. Even some smart people who are doing so well, that they do not want to really look down
Eric, I was going to comment on several points, but what the heck, your best article. Especially the 2001 analogies. I think HST will be the undoing of the markets , as to lack of regulation in 2008 was to the banking industry. It is the lack of in enforcement of regulations that exist that is the problem. We do not need new regulations, but enforcement of existing rules. Of course after the fact there will be finger pointing. So I will do my finger pointing now, the problem is lack of enforcement by our regulators and politicians. The blame is with congress and the president.
We are indeed going into uncharted waters without a paddle, or live saving vest.
U.S. Mint Sales For April: Most Gold Sold In Mint History [View article]
Eagle, you are right the coins are chump change,the central banks buy by the ton, and drive the price down to acquire more. Remember that they cannot tolerate a high price of gold because of what it says about the economy. The could not care less about buying gold at $1000 or $2000 since there is no actual cost when you have an electronic printing press, and by the way can change the rules of the game any time they want. This will take much longer to play out that we expect, they can kick the can down the road for years, with trillions of dollars. However they cannot defy gravity forever. When it happens it will be sudden, and catastrophic beyond our wildest imagination
U.S. Mint Sales For April: Most Gold Sold In Mint History [View article]
Precious, the parable I use for the market is the cartoon character of your choice who runs off a cliff, yet doesn't fall until he looks down, and survives a 500 foot fall. The market right now is manipulated, and all bets are off until the character looks down.
How To Identify Market Distortions Caused By The Fed [View article]
Matthew, well done. Explaining the inflation/deflation debate, with good historical prospective. However in the 1940's we went through traumatic geopolitical events that cloud economic prospective. You can sell war bonds and call on patriotism for example in the 40's. The rallying cry for the 2010 is too big too fail. The charts may look the same, but the people mind set is different.
Please note, this is not a criticism, but a comment on a well researched and written article.
Uranium's Dirty Little Secret - Investors Take Note [View article]
Daniel, could you reply to cost advantage if any for gas versus nuclear power plants. I see this as important competitor. Could you also go over pros and cons, not counting CO2 emittions
Tampat, good reasoning! Who is to say coke will even be around in ten years, history of 100 years, gold history 5000 years. This game is foolish. Pick any timeline you want to prove your point
The Bernanke Agenda - It Isn't What You Think It Is [View instapost]
The Bernanke Agenda - It Isn't What You Think It Is [View instapost]
Many of his actions seem incomprehensible to me as they as the outcomes of his policies seem longterm detrimental to the economy, as he does not seem to see the obvious. Such as misallocation of investments, due to low interest rates, and bubbles in the bond and commodities markets. Driving investors to increase risk, which cannot end well. So, if his policies are detrimental to the economy, what is his end game? This article lays out an interesting scenario, however I hope he knows about the economic law of unintended consequences. The end game as I saw it, is we are in a deleveraging deflationary cycle, leading to depression, or worse civil unrest. To deal with this deflation the central banks and their masters, and governments will need to inflate, and not be able to stop until it is too late, leading eventually to hyperinflation. I still think the end game is in doubt. However you article got me to thinking, maybe we can get out of this with just a market crash, like 2000. I hope he can pull it off. He would be seen as a savior. There are no good solutions, just bad and worse. Remember geopolitical event may intervene, to push best layed plans of mice and men.
If he does solve the economic problems of US, send him to the EZ, who I think have even more intractable problems.
An article that makes you think, and adds a new perspective EXCELLENT
Barrick-China Deal Big Win For Gold: USD Rise Veils Precious Metals Sector Strength [View article]
4 Scary Charts Warning Of The Next Financial Crisis [View article]
Economic Comparisons [View article]
Today's investors are like the cartoon character who runs off a cliff, and does not fall until he looks down, and of course a 500 foot fall and no damage. this seems to be an appropriate analogy, as most people who are not financially educated have no clue as what is about to happen. Even some smart people who are doing so well, that they do not want to really look down
New S&P 500 Price Target: 2001 [View article]
We are indeed going into uncharted waters without a paddle, or live saving vest.
U.S. Mint Sales For April: Most Gold Sold In Mint History [View article]
U.S. Mint Sales For April: Most Gold Sold In Mint History [View article]
U.S. Mint Sales For April: Most Gold Sold In Mint History [View article]
How To Identify Market Distortions Caused By The Fed [View article]
Please note, this is not a criticism, but a comment on a well researched and written article.
Thanks
Uranium's Dirty Little Secret - Investors Take Note [View article]
Uranium's Dirty Little Secret - Investors Take Note [View article]
What's Ahead For U.S. Interest Rates? [View article]
Thanks
Gold Vs. Coca-Cola [View article]
Amidst Physical Shortages, Gold Is Technically Neutral [View article]