Posted on 12/15/2011 10:54:49 AM PST by blam
Everyone Is Mocking Gold Bugs And Ron Paul Fans These Days
Joe Weisenthal
Dec. 15, 2011, 12:01 PM
Gold bugs are some of the most annoying people in the world, so with gold cliff-diving these days, people loving the chance to mock them.
Nouriel Roubini, for example, has been tweeting up a storm about how gold bugs are in hiding.
Yesterday, Paul Krugman put up a post pointing out how the hyperinflationary predictions of Ron Paul fans aren't coming to pass, as commodity prices and gold prices sink.
Matt Phillips at the Wall Street Journal twists the knife by pointing out how US Treasuries are holding up really well while gold sinks. US debt! A super-safe haven!
For more on the gold bust, see here >
(Excerpt) Read more at businessinsider.com ...
Gold has trended up for what 3 or 4 years now, and the Keynesians take joy in it losing only small portion over the past 2 days. If I were them I’d keep my mouth shut unless and until Gold goes below $900.00.........until then we’re still in an inflationary depression.
Got into Gold and Silver many years ago. Doing just fine thank you. Paul would be a welcome relief to what we have now.
Anyone here have a clear, common sense explanation as to why inflation is so limited in the face of world record money printing?
Yes, some lag time may be required.
Yes, some measurements of inflation may be flawed or bogus.
But surely there is something going on here that is not explained by historical experience?
You answered it yourself: time lag.
That said, don’t look for inflation in the official numbers. You’ll find it at the grocery store, at Home Depot, and at the gas pump, just for starters.
My thinking has it that government officials are pulling Wizard of Oz strings to control markets ... Today it involves Gold and Silver. Since 2008, they’ve been doing it in the stock market. Look up “Crash Protection Program” on Google.
Just imagine ... Politicians having inside information on what ... exactly ... the string pullers are dealing in from minute to minute.
Around 6 monts ago I bought bread at Target in Houston for 97 cents a loaf. It has gradually crept up to $1.24. Now it has jumped to $1.47. And Borden’s milk is almost $5 per gallon. This is just two examples. Don’t tell me there’s no inflation.
This website does a good job of pointing out the lies, rumors, inside dealing, and fraud going on every day in the markets. I myself can follow only about half of what I’m interested in, but it’s worthwhile anyway.
Demand is depressed by the state of the economy. Low demand holds prices down. QED.
Just did a Google check ... try “Plunge Protection Program” instead of “Crash Protection.”
Indeed. I keep detailed notes of what I spend my money on at Home Depot; pretty much everything I buy is up 15% or so this past year.
Because the excess isn't being circulated, I would guess. It's landing in the accounts of Federal Reserve banks, where it either stays or is traded off to some other big players in the financial markets, where it stays. The economy in general never sees these funds, and so inflation is kept in (relative) check.
But that's just my guess.
I check out ZH every AM. There’s a few nutty poster there but most of it is good info.
If you read Free Republic you know Bert Predicts $2,000 gold in late July 2012.
The prediction is based on extrapolation of the Kittco 5 or 10 year chart. You can do it your self with ease. If Bert can do it, anyone can
The recent downward changes are the market’s determination that the Euro crisis is not a crisis and has settled to the established trend line of 22% anual growth in the gold price. The market has additionally indicated the trend by a strengthening of the €. Taken together, it seems many believe the immediate crisis is over
If you buy gold as an inflation hedge you have to consider the capital gains tax you must pay when you sell it, along with the fees of buying and selling. At best, buying gold is less than staying even in true buying power. But the sellers and government make a living off it.
The best way to make money off of gold is to be the one that mines it, or the pawn shops that buy it for pennies on the dollar.
I don’t mock Ron Paul Fans. They do a great job of blowing things around.
The gold market is completely manipulated by large holders. It will go up again (and down again). Insiders know when to buy low and sell high. The rest of us can only know after the fact.
“That said, don’t look for inflation in the official numbers. You’ll find it at the grocery store, at Home Depot, and at the gas pump, just for starters.”
Spot on, well said.
Oh wait, you're thinking I will voluntarily report any time I make money?
And just think of how much those things have inflated when denominated in gold!!!
You’ll have to forgive him, he thinks conservatives by and large obey the duly passed laws of our country. Some of us know better.
Gold is too rich for my blood. I’ve been in silver for years. Not bad.
What I don’t get is this - what is it about some people that makes them take such pleasure in mocking other people’s financial losses? Is the temporary self-validation of saying “nyah nyah nyah” that intoxicating to them? Infantile sickos.
I didn’t say the increase in bread at one store indicates 50% inflation. But I believe food costs have gone up at least 15% in the past six months.
You're not alone:
Don't Be Fooled by Gold's Recent Dip, Still Forecast to See $2,000 in 2012
"I believe gold prices will eclipse $2,200 an ounce next year, and shoot beyond even $5,000 an ounce after that," said Krauth.
Abundant liquidity, but limited desire by businesses to expand capacity and hire more people.
Abundant liquidity, but limited desire by investors to chase the next “Asset Bubble.”
I’ve also begun to believe that the Internet is the greatest price discovery tool in world history.
If even 5% or 10% of consumers are highly informed about available prices, all sellers are forced to bring their price down to the lowest common denominator.
However, I lived through the Great Stagflation of 1981.
As I recall, unemployment was 10% and inflation was 16%.
The two major macro-economic issues of that period were oil prices and the weak dollar.
Adjusted for inflation, oil was about $100 per barrel, close to where it is now.
I can't find historical data for the “Dollar Basket,” which has been between 76 - 80 for a couple years now, I think.
Bottom line - inflation was 4 times worse in 1981.
——————————————————————————————”...don’t look for inflation in the official numbers.”
Just did my expenses for 2011.
Bus - Up 67%
Food - Up 10%
Rent and Utilities - Up 9%
My Pay Check - Up 0%
The central banks are mostly creating credit rather than printing up money to be handed out and spent. The credit is being used to staunch the credit deflation which would naturally occur at this point. But inflating credit does not produce economic growth, instead it eats away at capital which is the true source of growth. Capital gets funneled into speculation instead of being invested, one form of speculation is precious metals.
Once the credit boom collapses the central banks will have no choice but to print lots of money which will be spent on a rapidly shrinking supply of goods. It already happened in 2008, by the summer the Fed was spooked and turned off their printing press. The result was almost instant deflation (a dollar rise of 30%), and the stock market collapse following the Lehman collapse.
Looking ahead the Fed will have to do the same thing a few more times with various timings and amplitudes. The result will be a higher starting point for gold each time, a bigger rise, and a bigger rise in the prices that you seem to equate with "inflation". The final crackup boom will result in the complete destruction of the dollar (most likely replaced with a new currency).
The end of the 70's inflationary bubble and a mini crack-up boom. The main trigger then was decoupling the dollar from gold. This time the fiscal situation is much worse and total debt levels are much higher. Thus the inflationary boom will be much higher and we aren't close to that point yet.
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