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WMARKW

WMARKW
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  • Barring an unforeseen miracle, Congress' supercommittee will concede tomorrow it has failed in its efforts to produce $1.2T in deficit cuts. With even a fig-leaf deal now unlikely, talks are focused on "how to shut this turkey down."  [View news story]
    The central bank of the US does not theoretically own the US gold hoard. It is supposedly owned by the Treasury. However, in practical terms, I suggest there is not gold in Fort Knox, nor is the supposed US Treasury hoard of 8 thousand tonnes really owned by the US treasury. It's been stolen by the world banksters.
    Nov 20 11:49 PM | Likes Like |Link to Comment
  • The supercommittee breakdown will likely lead to more "lengthy and heated" battles over the deficit throughout 2012, HSBC says. At some point rating agencies will lose their patience, so be wary of further downgrades of the U.S. sovereign credit rating "at some point next year."  [View news story]
    Yes....emphatically. and you can rest assured the pols and their lobbyists including GSuchs and JPM will sell short ahead of time.
    Nov 20 11:39 PM | 3 Likes Like |Link to Comment
  • The supercommittee breakdown will likely lead to more "lengthy and heated" battles over the deficit throughout 2012, HSBC says. At some point rating agencies will lose their patience, so be wary of further downgrades of the U.S. sovereign credit rating "at some point next year."  [View news story]
    Terry forgot about the $750 billion deficits he ran in the first term +.
    Nov 20 11:37 PM | 1 Like Like |Link to Comment
  • The supercommittee breakdown will likely lead to more "lengthy and heated" battles over the deficit throughout 2012, HSBC says. At some point rating agencies will lose their patience, so be wary of further downgrades of the U.S. sovereign credit rating "at some point next year."  [View news story]
    No change to the tax code will ever produce revenue of more than 23% of GDP. Spending in the last 10 years has grown at twice the rate of revenue growth and twice the rate if inflation. Government has grown. It needs to shrink.
    Nov 20 11:31 PM | 3 Likes Like |Link to Comment
  • With the expansion of the EFSF - the idea that levitated markets throughout October culminating in Oct. 27th's moonshot - already looking dead, the EC leaks the next bazooka: A proposal for joint issuance of bonds among member nations. This one may not have any legs as Germans are vehemently opposed to going joint and severally liable with their spendthrift neighbors, and their constitutional court seems to have put the kibosh on the idea 2 months ago.  [View news story]
    And you can start with the eliminatin of Orin Hatch....so far as I am concerned. John Kerry, Nancy P, etc.
    Nov 20 11:22 PM | Likes Like |Link to Comment
  • With the expansion of the EFSF - the idea that levitated markets throughout October culminating in Oct. 27th's moonshot - already looking dead, the EC leaks the next bazooka: A proposal for joint issuance of bonds among member nations. This one may not have any legs as Germans are vehemently opposed to going joint and severally liable with their spendthrift neighbors, and their constitutional court seems to have put the kibosh on the idea 2 months ago.  [View news story]
    Truffel....what you are saying is it's hard to turn the ship of state around quickly....nevertheless that ship's momentum can carry it over the edge despite how aggressively they power on the reverse thrusters.....how's that for a mixed metaphor?
    Nov 20 11:14 PM | 2 Likes Like |Link to Comment
  • Don't Sweat The Correction In Gold [View article]
    I have been thinking about the word "correction". It is biased. It suggests that the price to which gold corrects is the "correct" price, and IMHO I believe that a drop in the gold price is not a reversion to the correct price. As the charts above show....no such correction has in fact been a signal of a change in the long-term upward trend. Thus, I suggest we all begin to consider a price drop as not a "correction" but a "buying opportunity".

    Thus....there have been only 10 "buying opportunities" over the last 9 years...about 1 per year, so such events are rare and should be taken advantage of. Now there is a new paradigm.
    Nov 20 07:41 AM | 3 Likes Like |Link to Comment
  • Today In Commodities: Is The System Flawed? [View article]
    "The market is rigged" and now JPM wants to acquire MF Global's ownership stake in the London Metals Exchange......more rigging on the way.
    Nov 20 07:19 AM | 2 Likes Like |Link to Comment
  • JP Morgan (JPM) is among several suitors for MF Global's (MFGLQ.PK) 4.7% stake in the London Metals Exchange, reports say. Buying the holding would increase JP Morgan's ownership to 10.9% and alter the dynamics in the £1B ($1.6B) takeover battle for the 134-year old institution.  [View news story]
    Gee.....I wonder why JPM would want to increase their ownership interest in the LME?

    Perhaps the only reason is to continue/enhance their ability to maniuplate the gold and silver markets.
    Nov 20 07:15 AM | 1 Like Like |Link to Comment
  • Narrowly Escaping Disaster [View article]
    And yet the concept of a balanced budget is actually contractionary.

    BTW neither government spending nor printing to pay off government debt would "necessarily" increase the money supply.
    Nov 20 02:12 AM | 2 Likes Like |Link to Comment
  • Why Gold Is Not A Safe Haven [View article]
    Ok....unfair...but yes gold price changes (correction signifies an inappropriate price change to an appropriate price which we can debate) both up an down. What makes a rise or a fall the correct price? If you are saying you have a good ability to "predict" with some accuracy price changes, then I will stipulate to that so far.

    On the other hand, as an owner of gold who doesn't care about price but only the number of ounces I own and whether those were acquired at advantageous prices vs. FRNs or Silver I don't follow or get too concerned about the price in FRNs.

    For example, I also own silver and I am willing to trade silver for gold or gold for silver. Recently I traded 42 ounces silver for gold and then traded 1 ounce gold for 52 ounces of silver. In neither case did it matter to me what the FRN price of silver or gold was.

    So clearly....you are a trader of Gold for FRNs and vice versa. That is great. But you are also, on the other recent thread, suggesting that gold may not be a hedge against inflation or deflation. To whit I have responded already.

    So...as to perspective. I view gold as an alternative asset to hold. It is an insurance policy against a potential cataclysmic event. Just like the Germans who held gold and diamonds and used them to escape Germany, I view gold as an alternative medium of exchange when someone says he will no longer accept FRNs. In that view, but particularly since I have held it for a long time and have cheap FRN gold, I don't buy and sell it to make money.

    When I stop working, then maybe I will be alot more interested in charting and buying and selling gold to make money....err FRNs.

    Still friends and respectfully
    M
    Nov 19 11:34 PM | 1 Like Like |Link to Comment
  • Hey, Did Someone Say Central Banks Are Buying Gold? [View article]
    Then you and I will be competing with the same FRN cash to purchase the same commodity....hopefully we won't drive the price up. :)
    Nov 19 11:20 PM | 3 Likes Like |Link to Comment
  • Narrowly Escaping Disaster [View article]
    It's how the government spends money that creates inflation and the environment in which they spend money. But I'll say again, that the government could print (digital) dollars to redeem government debt and it could be argued that redeeming such debt will not necessarily create inflation.
    Nov 19 11:18 PM | 2 Likes Like |Link to Comment
  • Narrowly Escaping Disaster [View article]
    Not so....Jim. There is not any reason even to charge interest on "printed money" except by the Fed's desire to "control" interest rates. When the Treasury spends money....it enters the system because the Fed is the gatekeeper of the portal. The Fed chooses to issue buy sell treasuries as their method for controlling the interest rate, but that is not a requirement for money to enter the system. It can simply be credited to the Treasuries bank accounts at the Fed. Taxing is the governments way of extinguishing money it creates. Some say it is also the price we pay for membership in the country. Or others say taxes are an inducement to get us to spend money so it circulates and "creates" something.
    Nov 19 11:16 PM | 2 Likes Like |Link to Comment
  • Narrowly Escaping Disaster [View article]
    Cullen is a MMT guy. Modern Monetary Theory in fact says that debt doesn't matter - but that is the case in a situation like the US where we issue our own currency and where, as a matter of fact, we are the world's reserve currency. Interest payments are funded by issuing new currency. Taxes are the extinction of currency created by the Treasury with the assistance of the FED. According to MMT, issuing debt instruments by the FED is simply done to control/influence interest rates....not to fund the government.
    Nov 19 11:11 PM | 1 Like Like |Link to Comment
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