Financial topics

[aedens]

How am I supposed to explain to people that they are going to have to pay a higher value-added tax (VAT) so that Greeks can get pensions three times as high as the ones in Slovakia?
h/t zh

[mannfm11]

Reading some of this stuff is funny. I haven't been here in awhile. I have to agree with Higgy about Silver. it bounced off the 50% level, but we are headed to a credit crunch that will make the last one pale in comparison. They are having trouble fading Greece going broke, denying the truth every bit of the way. Wait until the governments in Europe, Japan, China and North America can't float any more credit. The day is near and people are tired of taking on bondage to bail out the bankers and the bureaucrats as well. Bernanke missed his chance at a solution when he bailed out the banks, instead of taking advantage of the chance to close them and liquidate some debt. Obama flushed what was left of the US credit rating down the toilet.

The ratio of gold to silver will go to a minimum of 100 this time. The biggest demand for silver was photography and prior to that, coinage. There is a coming collapse of credit, but the contracts will still stand. Cash notes are going to be king for a period of time. I have noted the non-confirmation of platinum to gold, revealing the gold price to be a bubble. Platinum is a much more precious metal than gold. A worldwide bankruptcy proceeding is in the offing.

[aedens]

SDR since revenue is SWF appears to be there quest as we read. Capital flight is the issue of the ruble and euro. When that settles as
gravity influences maybe some will grasp parity by default is the only solution to ideologues of narrowed zone of intent.
We posit movement from 2012 to 2016 as a pain curve intensifies. Mother nature may have more to say than we.
History will always learn that the Nations are Judged by its soil conditions. Blaming Ben is pointless as is asking Washington to do what makes sense.
This took a long time to transpire so the infection is advanced in nature.
I amended this note to the direction seen. Observation from BIS confirm this.

Discern carefully the M2 there and what was done in the states to capital M2 here in the States under Q
http://media.hoover.org/sites/default/f ... Russia.pdf
Regulation Q--Sweeps and Money Supply
The Dodd-Frank Act allows banks to pay interest on ordinary demand deposits beginning July 21. Associated with this legislation the Federal Reserve Board has repealed Regulation Q.
The undoing of Regulation Q should render sweep arrangements as relatively less attractive.
With the unwinding of Regulation Q there is simply less incentive to sweep funds from checking accounts into overnight investment vehicles. Banks can simply offer business firms non-zero interest rates on demand deposits. There will simply be a diminished incentive for firms to sustain Sweep accounts.
Against this backdrop what we may be seeing is an unwinding of sweep arrangements prior to the July 21 repeal of Reg Q. As Eurodollar deposits mature, the deposit may be coming back home to the domestic branch in the form of a demand deposit for business accounts, or as an MMDA for accounts owned by individuals. From the Fed's H.8 release we know that there has been a dramatic sudden drop in US banks liabilities to their foreign branches. This is exactly what would happen if Eurodollar deposits were to be brought back to the balance sheet of the US branch. Stone McCarthy

Here is a bare-bones way to think about this situation: A is the customer, B is the service
provider. B informs A what A should buy from B, and a third entity, C, pays for it from a
common pool of funds. Stated this way, the problem has no known economic solution
because there is no equilibrium. There is no automatic balance between willingness to pay
by the consumer and willingness to accept by the producer that constrains and limits the
choices of each.

Functions are mediated as conditions to exist.
Leading Economic Indicators are shifted and so our
pocket we noted was somewhat accurate in nature. Rough number was ~11% deviation mid quarter
in my observation. Time out pockets to sort capital.

[vincecate]

The ratio of gold to silver will go to a minimum of 100 this time. The biggest demand for silver was photography and prior to that, coinage. There is a coming collapse of credit, but the contracts will still stand. Cash notes are going to be king for a period of time. I have noted the non-confirmation of platinum to gold, revealing the gold price to be a bubble. Platinum is a much more precious metal than gold. A worldwide bankruptcy proceeding is in the offing.

Gold and silver are "monetizing", or becoming viewed as money again. This is the dominant issue. As a currency silver was about the current ratio to US dollars back in the 1970s when two brothers bought a lot of silver. Since then there has been so many US dollars made (electronic and paper) that there are around 100 times as many dollars as back then. There is less silver around today because it stopped being used as money for a long time and was used up in film. Today there are many many people, companies, hedge funds, retirement funds, or countries that could buy up all the silver. There is 100 times as much US money floating around now as back then. If one entity decides that silver is a good investment it could buy it all up.

Platinum does not have the history of being money like gold and silver do. Central banks do not report how many tons of platinum they hold as they do with gold and used to do with silver.

The bubble that is going to pop is in sovereign debt and paper money. This is where trillions have gone. We will see this as interest rates going up and commodity prices going up.

[richard5za]

The bubble that is going to pop is in sovereign debt and paper money. This is where trillions have gone.

Gold and silver are "monetizing", or becoming viewed as money again. This is the dominant issue.

I think that this is correct. Also bear in mind that a large number of people on this planet are very suspicious of the Euro-American financial system and believe Western leadership has managed financial matters very badly. (Which is correct) China is seriously promoting gold and Asian buying is very strong at present.

I am not at all sure what to make of this, but it makes the point about China promoting gold:

"Get ready for the Pan Asian Gold Exchange, scheduled to open in June, 2012 in Kunming City, Yunman Province...Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. All 320 million customers of the giant Agricultural Bank of China will simply be able to use their Renminbi, the Chinese currency, from their bank accounts to trade gold. Sounds bloody dangerous doesn’t it.

It means the spot market in gold could be headed for China, and away from London’s Metals Exchange or the Comex in New York. I’d like to know who is going to oversee and regulate all this action. For example, when the Comex raises margin requirements to dampen speculative fervor– will China be governed by that? I doubt it very much..."

Robert Lenzner, The Chinese Mean to Control the Global Gold Market, Forbes

[OLD1953]

A move to control the global gold market means governments will make holding gold illegal. It doesn't mean gold will suddenly become "money".

[richard5za]

Higgie,
I have now had confirmed buy signals on my charts for gold and silver but not yet on platinum; still an early buy signal. However I posted a chart last week by Clive Roffey with a confirmed buy signal on platinum. (I suspect that in this instance his chart is a better predicter than mine)
The only caveat is that I am a little concerned that metals and the S&P500 have been going up and down together recently. The current bounce on the S&P will at some stage reverse and I am wonderingt if metals will hold? I think on the balance of probability, yes, but perhaps a conservative person would wait and see. Richard

[RDRUNR]

I have now had confirmed buy signals on my charts for gold and silver

Off topic. Wrong forum. Please post in the gold/silver forum.

Can we please keep the silver and gold paperweights to the correct forum and stop the double posting?

Tnx.

[vincecate]

Higgie,
The only caveat is that I am a little concerned that metals and the S&P500 have been going up and down together recently. The current bounce on the S&P will at some stage reverse and I am wonderingt if metals will hold? I think on the balance of probability, yes, but perhaps a conservative person would wait and see. Richard

The S&P reacts to changes in the value of the dollar. So the dollar getting up a bit was probably part of why both gold and the S&P were down.

I have bought some more puts on S&P so I feel better. It is not as much as I used to have but if there is a crash I will be fine. It is sort of to balance out my silver in case of crash in both market and silver.

Long term I still think they can not stop printing money as there is no chance of a balanced budget, so long term I expect gold and silver to do well.

[vincecate]

Can we please keep the silver and gold paperweights to the correct forum and stop the double posting?

Gold is just about worth its weight in $100 bills. The paper money will soon be wallpaper. Bet we see $1,000 bills in the next 3 years. Wonder how hard it is to get ATMs to handle them.