Posted on 12/01/2005 10:13:36 AM PST by Travis McGee
After 9/11 I bought a whole bunch of the following bgo & vgz
Outpreformed my no choice in how it's invested 401k by a long shot. I don't think that us "gold bugs" are against economic growth, but you would be foolish not to have some tangible assets that are liquid and not entirely dependant on the USD. I invest some money in traditional investments, some in stockpiling goods and materials that I will need or that could be traded for things that I wanted if my USD suddenly had 1/2 the purchasing power. I think those that will be hit hardest are the majority that are living on credit! The only thing that I have that is not mine free and clear is my house and I have been making extra payments whenever I can. I get 2-3 letters a week telling me to be smart and use the equity in my home, not thanks
Because the greater the worldwide demand, the greater the value of the large amounts of gold which they hold. This is not rocket science. It's called a "bull market." If I own 10,000 shares of XYZ corp, I hope lots of other folks will want to buy it, because then the value of my 10,000 shares will go up. Basic supply and demand.
If the debate interesting, why your post to me? I just made my debate comments. Thanks for posting the article, by the way.
I agree with your last post.
Not to mention the fools who HAD equity in their homes, but decided to take out a fresh (ARM) mortgage, to buy the big SUV, the giant plasma TV and so on. FOOLS! And millions of them....
Gold is useful as a signal that the Fed is too tight or too loose with money supply. Used as currency it leaves a lot to be desired.
You seemed to say that the article was of no value, because of the perspective of the man who took the time to write it.
Sure, as long as you don't sell them YOUR stock.
The GoldBuggers are unoading their own holdings...and for good reason.
What's that expression about suckers?
Actually Greenspan thinks CPI overstates inflation.
I used to be a deputy and I imagine that a lot of local sheriffs will simply stop doing the evictions once they become widespread, foreclosure papers are one thing but possession is 9/10ths. Like we saw on another board in Arg. is the bank going to physically remove people from their homes? I don't think so
I don't suppose you understand what the context was when he made his helicopter remarks?
What would you rather find in your granny's attic: a dusty cigar box containing 100 $20 bills from 1920, or a box containing 100 $20 gold pieces?
One sure way to get the real estate (and stock) market to collapse is to hit the economy with a nice dose of deflation. Kinda hard to pull equity out of your house when the value drops every year.
Deflation kinda sucked the wind out of the Japanese market not to mention our NASDAQ.
November 21, 2002
Deflation: Making Sure "It" Doesn't Happen Here
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
$503 eh? Strong close.
That's intersting news about Russia and China. Thanks for the ping.
I'd rather find $2000 worth of 1920 shares of GE or MO.
It sounds like he thinks deflation is a serious problem. Perhaps you agree?
"What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. Of course, the U.S. government is not going to print money and distribute it willy-nilly (although as we will see later, there are practical policies that approximate this behavior)."
See above. Looks like Helicopter Ben is another drunk talking about "fiat money" who needs a ride home from the bar.
Yep, sure is.
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