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Everyone Is Mocking Gold Bugs And Ron Paul Fans These Days
Tbi ^ | 12-15-2011 | Joe Weisenthal

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 ...


TOPICS: News/Current Events
KEYWORDS: commodities; economy; gold; inflation

1 posted on 12/15/2011 10:54:57 AM PST by blam
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To: blam

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.


2 posted on 12/15/2011 11:01:48 AM PST by JohnKinAK
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To: blam

Got into Gold and Silver many years ago. Doing just fine thank you. Paul would be a welcome relief to what we have now.


3 posted on 12/15/2011 11:03:03 AM PST by Sleeping Freeper
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To: blam
Mike Shedlock Tells Nouriel Roubini, Fundamental Case for Gold Has Not Changed
4 posted on 12/15/2011 11:03:35 AM PST by blam
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To: blam

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?


5 posted on 12/15/2011 11:06:20 AM PST by zeestephen
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To: blam
Mike Shedlock Tells Nouriel Roubini, Fundamental Case for Gold Has Not Changed
6 posted on 12/15/2011 11:07:18 AM PST by blam
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To: zeestephen

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.


7 posted on 12/15/2011 11:15:17 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: blam

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.


8 posted on 12/15/2011 11:16:06 AM PST by OldNavyVet
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To: blam
Time for the bingo card again...


9 posted on 12/15/2011 11:16:56 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: OldNavyVet
Carrying on with my Post 8 thoughts ...

Just imagine ... Politicians having inside information on what ... exactly ... the string pullers are dealing in from minute to minute.

10 posted on 12/15/2011 11:19:21 AM PST by OldNavyVet
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To: jiggyboy

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.


11 posted on 12/15/2011 11:21:58 AM PST by Terry Mross (I'll only vote for a second party)
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To: OldNavyVet

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.

http://www.zerohedge.com


12 posted on 12/15/2011 11:22:22 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: zeestephen

Demand is depressed by the state of the economy. Low demand holds prices down. QED.


13 posted on 12/15/2011 11:24:19 AM PST by Burkean Buckleyite
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To: OldNavyVet

Just did a Google check ... try “Plunge Protection Program” instead of “Crash Protection.”


14 posted on 12/15/2011 11:25:39 AM PST by OldNavyVet
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To: Terry Mross

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.


15 posted on 12/15/2011 11:26:16 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: zeestephen
Anyone here have a clear, common sense explanation as to why inflation is so limited in the face of world record money printing?

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.

16 posted on 12/15/2011 11:31:19 AM PST by Oberon (Big Brutha Be Watchin'.)
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To: jiggyboy

I check out ZH every AM. There’s a few nutty poster there but most of it is good info.


17 posted on 12/15/2011 11:35:47 AM PST by Rusty0604
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To: blam

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


18 posted on 12/15/2011 11:40:23 AM PST by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: blam

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.


19 posted on 12/15/2011 11:41:24 AM PST by Dogbert41 (Israel is real:))
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To: blam

I don’t mock Ron Paul Fans. They do a great job of blowing things around.


20 posted on 12/15/2011 11:52:30 AM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: blam

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.


21 posted on 12/15/2011 11:54:25 AM PST by mas cerveza por favor
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To: jiggyboy

“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.


22 posted on 12/15/2011 11:59:16 AM PST by MCF
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To: Dogbert41
Capital gains from selling gold???? Really? And how would you know if I sold my gold?

Oh wait, you're thinking I will voluntarily report any time I make money?

23 posted on 12/15/2011 12:00:02 PM PST by Solson (The Voters stole the election! And the establishment wants it back.)
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To: Terry Mross

And just think of how much those things have inflated when denominated in gold!!!


24 posted on 12/15/2011 12:50:43 PM PST by CharlesWayneCT
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To: Solson

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.


25 posted on 12/15/2011 12:53:37 PM PST by CharlesWayneCT
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To: Solson; Dogbert41
And how would you know if I sold my gold?

I can't speak for Dogbert41, but personally, I wouldn't know if you sold your gold. The IRS, of course, would know from your brokerage's report of your gains. It's called a 1099-B.

Or do you mean to imply that you actually hustle around buying and selling physical gold?
26 posted on 12/15/2011 12:57:23 PM PST by aNYCguy
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To: blam

Gold is too rich for my blood. I’ve been in silver for years. Not bad.


27 posted on 12/15/2011 1:02:04 PM PST by youngidiot (Hear Hear!)
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To: Terry Mross
Don’t tell me there’s no inflation.

I won't tell you there's no inflation, because there is, and it's bad. But if you think that your anecdote about your favorite bread's price at Target reliably indicates an increase in food prices of fifty percent over the last six months, I don't really know what to tell you.

The real figure is more like five percent in 2011.
28 posted on 12/15/2011 1:05:58 PM PST by aNYCguy
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To: blam

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.


29 posted on 12/15/2011 1:11:52 PM PST by lonevoice (Klepto Baracka Marxo, impeach we much. We will much about that be committed.)
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To: aNYCguy

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.


30 posted on 12/15/2011 2:07:22 PM PST by Terry Mross (I'll only vote for a second party)
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To: bert; Mariner; jiggyboy
"If you read Free Republic you know Bert Predicts $2,000 gold in late July 2012."

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.

31 posted on 12/15/2011 7:20:17 PM PST by blam
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To: bert; Mariner
Citi Predicts Gold At $3400 In "The Next Two Years", Potential For Move As High As $6000
32 posted on 12/15/2011 8:11:51 PM PST by blam
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To: Oberon


“But that’s just my guess.”

I like that idea.

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.


33 posted on 12/15/2011 10:27:34 PM PST by zeestephen
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To: Burkean Buckleyite

“Low demand holds prices down.”

I don't disagree.

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.

34 posted on 12/15/2011 10:43:28 PM PST by zeestephen
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To: jiggyboy

——————————————————————————————”...don’t look for inflation in the official numbers.”


I agree.

Just did my expenses for 2011.

Bus - Up 67%
Food - Up 10%
Rent and Utilities - Up 9%

My Pay Check - Up 0%


35 posted on 12/15/2011 11:04:12 PM PST by zeestephen
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To: zeestephen
why inflation is so limited in the face of world record money printing

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).

36 posted on 12/17/2011 3:33:35 PM PST by palmer (Before reading this post, please send me $2.50)
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To: zeestephen
inflation was 4 times worse in 1981

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.

37 posted on 12/17/2011 3:42:17 PM PST by palmer (Before reading this post, please send me $2.50)
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