cheapybob

Roubini Hates Gold: Is He Wrong Again?

I don't agree with either view. Its really a question of how much longer the dollar maintains purchasing power. It has nothing to do with gold itself, other than that gold is real money and the dollars are just paper promises that politicians will find a way to re-neg on in time, because there is no possible way to actually repay those promises, they are now so large.

The Dollar as a Reserve Currency

I think the real worry is if and/or when all those dollars now being held by others as reserves get repatriated back to the U.S. as demand for commodities and cause inflation as a result. High inflation on commodities will not make for an easy day at the Fed or treasury, even with jobless rates ballooning. At some point those foreign lenders are going to say "Nada mas".

What Does ETF Money Flow Tell Us About Gold?

There are a LOT more US Dollars out there that could potentially refer to be in gold that there is gold to buy. As the worldwide debts mount, they will become more risky investments, and people will worry about thir potential loss of wealth holding them.

I the words of Will Rogers: "I'm not worried about the return ON my investment, I'm worried about the return OF my investment." Returning debased and devalued paper even with interest, isn't a return in my book.

Obama's Economic Ideas Don't Address the Problem - And the Market Drops

Yup, you're dead on, again. I don't think they realize we can't keep borrowing more because our credit will be no good very soon.

Buffett's Import Certificates Plan Could Pilot the Economy to a Safe Landing

I've read the WTO rules and it would not be a violation. Note that Buffet's idea doesn't limit the imports from any particular country or for any particular goods, it just limits the availability of certificates to those who exported and for the amounts of those exports. If you implemented the idea, you'd have the certificates expire in 6 months and trade them on the exchanges, and then have them sent electronically to the government as the goods came through customs.

A lower standard of living for the future has already been guaranteed by America's borrowing. The bigger the debt is allowed to become, the worse the fall will eventually be, and the longer the idiocy is allowed to persist, the bigger that debt gets.

Face it folks, we don't "trade" much, we just buy stuff with IOU's to PLUTO and beyond.

Buffett's Import Certificates Plan Could Pilot the Economy to a Safe Landing

The alternative is to keep doing what we are doing till the rest of the world simply REFUSES to lend us another nickel. Not to our people, our corporations, our munis, our states, OR LASTLY, our federal government. The Federal government is now the ONLY one left. How much longer will they continue to lend to it???

Buffet's plan is good because it lets the free market decide what imports are really needed, penalizes imports without tariffs instead of debasing/devaluing the dollar, and provides incentives to production and export of American made goods. The alternative is surely a complete collapse of the dollar, but as always, its a question of when. Without eliminating the trade deficit, I think we will soon find out WHEN.

Own Gold? Time to Fold

The author should be condemned to keeping his savings in US dollars for the next 5 years

Hang on to Your Gold

I think the dollar will be devalued soon.

Is It Time to Buy Gold?

"Gold is money, and NOTHING else is" - J. Pierpont Morgan

"Paper is poverty" - Thomas Jefferson

Is It Time to Buy Gold?

"Gold is money, and NOTHING else is" - J. Pierpont Morgan

"Paper is poverty" - Thomas Jefferson

Chart of the Week: Yields on U.S. 10-Year Treasury Notes Below 3%

The mortgage rates were much lower pre 1962 than they are today. My parents bought a house in 1961 with a 30 yr mortgage at 3.5% fixed. They are currently 5.5%.

Gold Bugs Beware

"Gold is money, and nothing else is." - J. Pierpont Morgan

If you notice, the COT commercials short position has been declining since 7/15 when gold was $981. I think if you look back in the data you'll find the commercial short position is lowest when the price is low, and maxes out when it peaks.

Gold Bugs Beware

"Gold is money, and nothing else is." - J. Pierpont Morgan

If you notice, the COT commercials short position has been declining since 7/15 when gold was $981. I think if you look back in the data you'll find the commercial short position is lowest when the price is low, and maxes out when it peaks.

The Real Cause: Current Account Deficit

You are on the mark. And we are completely DEPENDENT on the rest of the world to LEND us back the money we pay for goods, and if they get scared to LEND it back to us, the music stops....

Just imagine what happens when they realize those dollars are just like confetti.

Gold: The Last Carry Trade

I think the Central Banks have signaled that the suppression of gold prices is no longer their top priority. I don't expect we'll see gold sales from them as was done in the past because that would put them in a position of increasing their dollar reserves. I've also read recently that they are both not leasing out more gold, and refusing to roll older leases. Much of the supply in recent years has been from those leases and gold sales. Now the supply will be what the miners produce, which is a lot less. That explains the shortage of physical gold. As for why the price of paper gold is dropping, I thing its due to the deleveraging going on. Eventually, I think the price will rise to reflect supply and demand.