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Originally posted by occrider Yes the fed has been rapidly expanding its balance sheet but this is from printing money as opposed to increasing taxes. YES it will have to reduce its balance sheet eventually out of flear of inflationary concerns but the principal threat is still DEFLATION which is why the fed is willing and able to expand its balance sheet as such. If you even compare the fed's balance sheet with most other primary central bank you see this: In other words, the fed has been far more innovative in the tools it has created to pump liquidity into the market. Not only will this help to limit the recession, but it is in a far better position to do so relative to other central banks. I'm sick and tired of shock and awe journalistic populism trumping economic realism. (emphasis added)

that's right trancer. you have no fucking idea what you're regurgitating.

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Originally posted by pkcRAISTLIN that's right trancer. you have no fucking idea what you're regurgitating.

So that's why gold jumped $75 an ounce in one day a couple of weeks back? It was the same day that we printed a trillion fiat dollars.

Good luck buying gold right now. To even buy it in my area you have to be placed on a WAITING LIST for it. lol

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Originally posted by liquid solja So that's why gold jumped $75 an ounce in one day a couple of weeks back? It was the same day that we printed a trillion fiat dollars. Good luck buying gold right now. To even buy it in my area you have to be placed on a WAITING LIST for it. lol

so? how is this relevant or notable at all?

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ah, let the good fucking times roll.....

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Originally posted by liquid solja So that's why gold jumped $75 an ounce in one day a couple of weeks back? It was the same day that we printed a trillion fiat dollars. Good luck buying gold right now. To even buy it in my area you have to be placed on a WAITING LIST for it. lol

By that logic, did you see how BAC and C went up 10-15% today. Good luck buying stock in them now...

Moron

BTW, here's a year chart of gold. Which day did it move $75 in one day a few weeks back, because I'm not seeing it? I do see how it went from $1000 to below $900 in about a week in February. I also see how it's returned to the level it was before we announced that we were printing more money. What you can take from that is everyone buys out of fear that they'll miss the rally, then reality kicks in and the price drops back to normal. If what you're saying were true, we wouldn't have retracted.

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"Go back to bed america your government is in control
Here's American Gladiators, here is 56 channels of it,
Watch these picturary retards bang their fuckin' skulls together and congratulate you on living in the land of freedom,
Here you go America you are free to do as we tell you
We want your soul
Your cash, your house, your phone, your cash, your house, your life" -Adam Freeland - We Want Your Soul

Alot of money has been coming out of gold and oil the past few days and going back into stocks. People are afraid of missing the bottom so they are jumping out of what they consider the safety or "fear" trades and piling back into the DOW/Nasdaq. I personally don't think this rally will last much longer..but we'll see.

My money is on gold $1200 this time next year and $3000+ within 5 years.

If you hold up Ron Paul as an authority on economics, you'r fucking retarded.

Yeah because everyone else is/was right Krypton, the bubble fuking popped einstein.

Live with it.

cretinrot understands even less about economics than trancer. that's no small achievement!

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Ron Paul and his former monetary advisor, Peter Schiff, has been calling this for a looooong time.

It's just too bad that so many people have been brainwashed into thinking that free market economics (Austrian) is somehow inferior to the Fabian socialist, Keynesian economics, which I might add is what got us in this mess in the first place.

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The US Federal Reserve, having flooded the market with liquidity by more than doubling its balance sheet in less than six months, may be unable or unwilling to withdraw it in time for fear of precipitating a secondary relapse in economic activity. Other central bankers will also face intense pressures to "support" their domestic economy by weakening the currency, leading to competitive currency devaluations. The race to the bottom in fiat currencies has begun and hard assets, particularly gold and silver, should be the primary beneficiaries. http://www.ft.com/cms/s/0/eff64394-...?nclick_check=1

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Will the world run out of gold? 2009-03-28 18:00:00 Commodity Online MUMBAI: Heard about the recent Fed Reserve’s decision to buy back toxic debts worth $300 billion? If you are wondering where is the money coming from to pump in so much dollars into the economy, the answer is the US Fed is just printing it. In fact the printing press of the US treasury is working overtime now. So, even as the Fed is churning out dollar notes without proper support of gold stock, investors across the globe are now getting jittery. Because, they have now started wondering whether the gold which they are trading in the Futures market really exists. If you go by the details and the trade volumes, it is just a fiction and the game of a piece of paper called contracts. Check out the Futures trade where gold is the most sought after commodity now. If people take delivery for the quantity of gold they buy, no exchange traded fund or bank can supply that much gold. So, what will they do. Will they give shares in gold mines to fulfil the contracts! In fact, exchange traded funs and commodity exchanges may have to do that now if gold demand goes up like this. The supply and demand for gold is in no way synchornised. Gold demand is so high that nobody can supply that much Yellow metal. So, gold prices are surging day by day. The production of gold is also not going up substantially. Even though several mining companies have decided to step up production. Until October, 2008, it didn’t matter. Only about 1% of long buyers of paper gold futures contracts took delivery. Now, the situation is very different. Demand has surged and, it appears, several futures exchanges are unable to meet the requirements of their contracts. Reason is that they don’t have as many gold bars to supply to the people who seek delivery. The only way that remaining supplies can be rationed is by a rise in price sufficient to deter some of the buying. According to a report appeared in a website (seekingalpha.com), the NYSE-Liffe futures exchange has, it seems, run out of 1 kg bars of gold. US law requires clearing members to keep a stockpile, of one kind or another, consisting of a minimum of 90% of metal. Which many exchanges are not able to do now. Clearing members are now being allowed to hand out little slips of paper, called “warehouse depository receipts” (WDR). These are being substituted for “vault receipts” (VR). The WDRs, in contrast to the VRs, merely promise the customer that he owns a 1/3 interest in a 100 ounce bar. The customer is not allowed to take delivery, unless he can accumulate 3 WDRs, which equals 1 VR. Unlike the American exchanges, the 1 kg bar dominates deliverable contracts, for example, on the Tokyo Commodities Exchange, as well as many other commodities exchanges around the world. They were also the primary unit of the mini-gold contracts (YG), offered by NYSE-Liffe, prior to the technical default. In other words, the retail gold shortage has spread into the wholesale market. All that said, however, given that the Fed printing press is running overtime, things are going to get tighter. It will take only a few months of delivery percentages similar to those seen in December, 2008, before all the 100 ounce gold bars are gone. What will the futures exchanges do? Hand out little slips of paper entitling contract holders to a ¼ interests in 400 ounce banker’s bars? There is no rule that allows that. What happens when people start taking mass delivery of the 400 ounce bars? Will they hand out fractional shares in gold mines, along with picks and shovels? http://www.commodityonline.com/news...-16434-3-1.html

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Paul Revere & Gold By David Vaughn Mar 31 2009 9:41AM Remember the story of Paul Revere? He rode his horse through town shouting that the British were coming? That is basically what the web sites have been doing for about 20 years. But what did Paul do when the British eventually arrived in the street? At that point there was no use shouting any longer from his horse that the British were coming. Because at that point they had arrived. “…I alarmed almost every House, till I got to Lexington.” …if a Man will risque his life in a Cause, he must be a Friend to that cause…” masshist.org/cabinet/april2002/reveretranscription.htm So we too have been shouting that the day of economic reckoning was on its way. Do we continue to shout that it is on its way? It has already arrived. So what is our next responsible task? Where’s the bottom and where is the top? Seems to be what everyone is wondering. Again, is this a recession or a depression? Who knows? Recessions are bad and depressions are worse. Good as any answer. And where does gold fit now into the picture? “Our objective now: To chart the expected path of gold prices in the New Year. This report also reveals another wild card inflationary indicator that Hutchinson believes will carry gold prices to $1,500 an ounce by the end of 2009.” “But Hutchinson – who correctly predicted this last run-up in gold prices – says there’s another catalyst that’s right now inherent in the U.S. economy that could help vault gold prices to $1,500 an ounce by the end of 2009. And it has to do with the much-ballyhooed $700 billion rescue plan.” moneymorning.com/2008/12/24/gold-2009/ Why has the economy collapsed so quickly? Good question. Deserves an answer. Trillions of dollars of credit have disappeared out of the financial markets just in the past twelve months alone. But do not worry about anarchy or civil unrest. Fortunately, we have a new militia planned to keep public discord under control. Administration - “We cannot continue to rely only on our military in order to achieve the national security objectives that we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded.” “What job will they do that the National Guard cannot? Who will they answer to?” ”As Larry Correia says, "the very first thing that popped into my head when he said that was the Brownshirts.” crypticsubterranean.blogspot.com/2008/07/obamas-private-army.html Wow! What does that remind you of? “In 1921 Adolf Hitler formed his own private army called Sturm Abteilung (Storm Section).” spartacus.schoolnet.co.uk/GERsa.htm Excellent idea! We need a new military force for the Executive Branch of government. As presidential powers continue to grow their must be a military force capable of carrying out the policies of the presidential administration. “A group of brown shirts or black shirts organized into an effective street-fighting force is now absolutely necessary to resist the corruption in the government. This is what Hitler did: the SA and, later, the SS.” godlikeproductions.com/forum1/message625155/pg1 I wonder what color of shirts the new US fighting force will be? Blue is a lovely color. Brown is just too, too bland. And what present unrest has already begun that is eventually going to have to be kept under control? Believe it or not tent cities are starting to show up across the nation. Just as in the 1930s. “…Bruce Beavers never expected to be homeless. He managed warehouses and hardware stores, had a 401(k) plan and owned his home. But Beavers said he lived beyond his means and eventually lost everything.” cnn.com/2009/LIVING/wayoflife/03/19/seattle.tent.city Consider how these events today are so distant of the events we witnessed just a mere 10 years ago. An entire world turned on her side. And the people with it. We are already beginning to see tent cities sprouting up across the country to house our growing population of homeless and those out of work. There are now tent cities inhabited by unemployed and the foreclosed as reported in the media and Oprah. Back in the depression, they were called 'Hoovervilles'. Are these 21st century versions worthy of the moniker 'Bushvilles'?” archinect.com/forum/threads.php?id=86397_0_42_0_C Is this for real? Happening in 2009? What happened to all those 401K plans that were going to make everyone rich? “Tent cities reminiscent of the "Hoovervilles" of the Great Depression have been springing up in cities across the United States - from Reno in Nevada to Tampa in Florida - as foreclosures and redundancies force middle-class families from their homes.” “We all take care of each other," Michelle Holbrook, a 34-year-old resident of the Sacramento camp who lost her job as a carer, told the San Jose Mercury News. "I've become the camp mother: I do most of the cooking, and make hot water for coffee." A resident of Reno's tent city, Tammy, said: "We eat things that other people throw out, or whatever ... It's really embarrassing to say, but that's the way it sometimes is out here." Another Reno tent-dweller, Jim, told one of Oprah's reporters it was "like learning how to live all over again". co.uk/world/2009/mar/26/tent-city-california-recession-economy Yes, this is for real and happening and growing even as we now speak. “…more and more people were ruined. Delinquent taxes, drastically rising unemployment and mortgage foreclosures were heavy burdens to overcome. Those factors forced ordinary people to either move into Hoovervilles or become transients. Between 1929 and 1933, more than 100,000 businesses failed across the nation. When President Hoover left office in 1933, national unemployment hovered at a staggering 13 million — nearly 25 percent of America's work force.” u-s-history.com/pages/h1642.html And gold where art thou? “In this unstable economic climate, investor demand for gold, platinum, and silver has exploded, leaving the US Mint scrambling to fill public demand.” ”…this is the case all over the world…” ”What this shortage of physical gold and the subsequent increase in the above-spot premium tell me is that the economic climate is convincing a lot of non-investors to buy gold.” “By that I mean people who don't buy mutual funds or stocks or anything but usually keep their money in cash are seeking safety in gold. It could also be that people have grown weary of invisible electronic investments that send their money off somewhere to potentially vanish. With the Dow falling so hard, and with people losing their life savings to scumbags like Bernie Madoff, people are realizing that if you can't hold it in your hand, it can potentially vanish. Real physical gold in your own possession is the safest and best way to invest in gold. The proof is in the demand.” the-gold-market.blogspot.com/2009/03/gold-shortage-discontinues-proofs.html How bad are things going to get? It seems now to be up to the United States government. Can the government create enough money before the US and global economies plummet off the horizon? Unemployment is predicted by many analysts to reach double digits. These days are worse than the days of FDR. The only master plan seems to be the creation of trillions of more paper dollars. Will capitalism survive ten years from now? Certainly more inflation is in the works as this new money enters the system. Where are all the jobs today? In the service sector. The government and health system primarily. And what maintains the service sectors? Without productivity and manufacturing the service sector has no legs to stand on. All eyes are on the US dollar. If the rest of the world begins to lose faith in our paper dollars then the financial world sinks period. “Government and service jobs are the big places to get jobs today," says John Connaughton, director of the University of North Carolina-Charlotte Economic Forecast. Service jobs include health care and education, he says.” usatoday.com/money/economy/employment/2009-03-23 Chinese exports are slowing. Less exports means less foreign capital will be available to finance the US debt. Mortgage default rates in 2009 are predicted to be higher than 2008. Option Arms coming due. It is estimated there are over 20 million US workers unemployed. So far not one dollar has gone to help a single family stay in their home. The money to pay working people is going to the financial manipulations that made the very wealthy even richer and left the little people screwed. There is no room in Washington for those needing a helping hand. Americans remain faithful that they are special and immune from this type of devastation. Almost 75% of Americans believe they will be better off in 10 years. Ha!!! Many of the ignorant beliefs are at odds with the facts. “The only reason someone who bought a Treasury can get their money is that the government is able to borrow more money to pay them off," said Peter Schiff, president of brokerage firm Euro Pacific Capital.” "It's impossible for us to just keep going deeper and deeper into debt.” Government policies will lead to a severe devaluation of the dollar. Make no bones about inflation returning down the road soon. Oh, by the way. Have you noticed that the Lipper mutual fund index for gold mining stocks is up over 15%, 3-27-2009? Is the world really falling apart? I think so. Actually, it is a realignment of wealth. Primarily away from the United States to else where. Even talk now about replacing the US dollar with a new reserve currency because of instability of dollar. It’s finally happening before our eyes. Banks being nationalized. Privacy ending for everyone. Globalization occurring at an accelerated rate. The following below is an interesting email from a reader. “Dear Dave, A trillion is a mind-boggling number, well beyond the capability of most of us to imagine. The following will illustrate. “…a stack of $100 bills totaling $1 trillion would be 789 miles or 144 Mt. Everests stacked on top of one another.” EY Where do we go from Here? Watching the middle class continue to cease as a viable class. The rich and the poor. More and more difficult to get ahead. Millions suckered in the past 20 years with the hope and expectation of building their personal wealth off the backs of 401Ks. We have not even begun to see where this will lead eventually. Not for the better though. And what more can we say about the current status of gold? Recently, the renowned news service Bloomberg is predicting that gold prices in 2009 are expected to be greater than last year’s numbers. And even according to The International Monetary Fund they are expecting gold to start rising in price as the year 2009 progresses. Even the Wall Street Journal is predicting a greater rise in the gold price as the economy continues to flounder in a downward direction. These are not the developments of only a temporary trend. These are long term forecasts predicting a continuing change in gold reputation as an asset class. I have made the statement before that whatever presidential candidate had won this fall would not have mattered. Our country is in comparison to a mortgage holder holding a mortgage that is beyond his means to pay. We are debtor to the rest of the world and they can bear much weight in the fact that the money that they have loaned to us is decreasing at an ever accelerated rate. I have long thought. Are the loan holders going to sit idly by as the US prints more and more paper dollars thereby destroying their investment in the United States? Will the day soon come when the U.S. Treasury holds an auction, and no one shows up? That day may soon be here. I believe at this point about 13 trillion dollars has been committed to bailing out the financial crisis. Thats a lot of money. Money that is really not real but merely created paper dollars with zero backing. Let’s prop up everyone and allow no one to fail. A chicken in every pot. And again, where art thou oh gold? http://www.kitco.com/ind/vaughn/mar312009.html

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“Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” - Alan Greenspan

Jim Rogers - Dollar Collapse - America Bailing Out Wallstreet At The Cost of The People




Peter Schiff - We Live In A Fake Economy - Dollar To Fall Like A Stone - Gold To $2,000.00




Marc Faber - Buy Buy Buy GOLD before the dollar collapses

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Why gold is best way to ride recession 'Buyers are not looney-tunes living in armed tree houses' By Diane Francis, Financial Post March 31, 2009 Nobody knows whether the current Washington bailout plans will work quickly, at all or at what cost to the U.S. currency. China and others are talking up a new reserve currency, or basket of the biggest such as the Euro, Yen, U.S. dollar and a fewothers of significance. The future is always a matter of opinion, as is political competency, which is why it's a good idea to own a little gold. That may be a leap to most people, but the facts are that protecting yourself against the vagaries of markets, leaders and capitalist running dogs has never been more important or perilous. Best advice I've come across is to divide your asset mix into four classes: real estate, stocks, bonds and gold (probably bullion or coins not stocks). IT'S APPARENT THAT MORE PEOPLE IN THE WORLD ARE TURNING TO GOLD FOR SEVERAL REASONS: 1. The U.S. dollar as a reserve currency is on the endangered species list and as it wobbles the only safety play is gold. 2 . Capitalism as we have known it recently is also coming to its logical conclusion and the uncertainty of what, when, how and who has led the millions of younger entrants to Asia'smiddle class to buy a little bling. 3. Chicken Littles: these are the survivalists who think the world as we know it is also coming to its logical conclusion. They counsel the purchase of gold coins, bottled water, a generator, canned goods, a garden and guns. (dailyreckoning.com.) 4. Legacy gold bugs whose beliefs are rooted in libertarianism and paranoia about gold price manipulations. 5. Other gold bugs include those who will never believe in paper currency and want a return to "fiat"money, backed by gold as was the case until a handful of decades ago. My favourite lately is an excerpt from a gold bugmanifesto out of Australia: "After gold's breathtaking $38 surge in 15 minutes, there is much renewed interest in the Ancient Metal of Kings. The Federal Reserve, which is clearly being run by lunatics, publicly announced it is going to create over a trillion dollars out of thin air to monetize U.S. debt. This degree of pure monetary inflation is utterly unprecedented, Gold soared because it remains the best asset to own in inflationary times. Inflation is an immoral stealth tax levied on everyone." Of course, Canada is a big gold producing nation, and I'm on a gold mine board, so I'm a bigger fan of the shiny stuff than most. But the five reasons behind the belief in gold's intrinsic value continue to drive prices upwards. And buyers are not looney-tunes living in armed treehouses. Here are estimates I blogged about last week as to prices in 2009 and 2010 by a sprinkling of financial institutions: Citi Group -- gold will hit US$2,000 an ounce by end of 2009 Bank of America, Merrill Lynch -- average US$1,000 an ounce in 2009, up from a previous estimated average for the year of US$875 an ounce. In 2010, US$1,050 an ounce. UBS--US$1,000 an ounce average in 2009. Morgan Stanley -- also US$1,000 an ounce in 2009. On the other hand, an Indian website called Sife points out that gold reached a peak of US$800 an ounce in 1980 which is equivalent, in real terms, to US$2,500 an ounce today. http://www.vancouversun.com/news/go...6477/story.html

its too bad that trancer doesn't actually understand economics otherwise he wouldn't repeatedly be making such a fool of himself.

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Originally posted by pkcRAISTLIN its too bad that trancer doesn't actually understand economics otherwise he wouldn't repeatedly be making such a fool of himself.

How is pointing out the obvious making a fool out of myself? lol

So far I've been right about this entire market but apparently you just can't accept that so you have to lie not only to yourself but also to everyone else in order to make it seem otherwise.

You're really pathetic but I'm sure deep down you already know that.