Financial topics

[gerald]

Glad I am not in the market, it looks like loony toons with a big bad ax. Hope I do not get chopped even though I am only in the general economy with hard income assets. The economy does not feel right, and all those in business I talk to feel the same, something is not right.

[aedens]

Glad I am not in the market, it looks like loony toons with a big bad ax. Hope I do not get chopped even though I am only in the general economy with hard income assets. The economy does not feel right, and all those in business I talk to feel the same, something is not right.

http://en.wikipedia.org/wiki/Louis_Brandeis

When the people awake you may be right.

"He was dangerous not only because of his brilliance, his arithmetic, his courage. He was dangerous because he was incorruptible. . ."

http://www.zerohedge.com/article/most-r ... club-mega-

Until the Voters awake...

[abs]

What will happen if the Fed Audit actually occurs and is publicized?

http://www.huffingtonpost.com/2009/11/1 ... 64546.html

I bet that exposing the market manipulations the Fed is taking will have a severe negative impact on the markets . . .

[JimZ]

I think we will never see an audit of the Fed in our lifetime. They have friends in high places who will never allow it. I admire Ron Paul's "gumption" but it is naive to think the central bankers who control so much would allow this to happen. I am certain they have enough congressmen and senators completely paid off and sold out to them so that they are not even losing any sleep over the thought of an audit.

[aedens]

http://www.ft.com/cms/s/0/20eb4ca6-d861 ... ck_check=1

[freddyv]

From his oldness, Richard Russell:

Question -- Russell, if there is a stampede to buy gold, how do you think it will start?

Answer -- If there's a panic to buy gold, I think it will start in China, aided by other Asian nations and probably by Russia. I think China seriously doubts that the US will cut back and do what has to be done to save the dollar. Therefore, I believe China is on a path of accumulating as much of the world's gold as possible (they're doing the same thing with rare earths). At some point, the Chinese renminbi will be seen as the world's strongest currency. The Chinese will then partially-back the renminbi with gold, at which point the renminbi will be the world's new reserve currency. The dollar will be an unwanted "has-been." I've said many times that the Achilles Heel of the US economy is the dollar and its reserve status. The Chinese know that very well

At some point the US and China will be enemies in the new economic battle. To prepare for such a time, the Chinese are building their army, navy and air force. They want to impregnable in case of war. They also want to join hands with the Russians. It will be the US and Japan against the new and powerful rivals. Europe, bewildered and feeble, will be a bystander.

...sounds like he's been visiting GenerationalDynamics.com

--Fred

[aedens]

From his oldness, Richard Russell:

Question -- Russell, if there is a stampede to buy gold, how do you think it will start?

Answer -- If there's a panic to buy gold, I think it will start in China, aided by other Asian nations and probably by Russia. I think China seriously doubts that the US will cut back and do what has to be done to save the dollar. Therefore, I believe China is on a path of accumulating as much of the world's gold as possible (they're doing the same thing with rare earths). At some point, the Chinese renminbi will be seen as the world's strongest currency. The Chinese will then partially-back the renminbi with gold, at which point the renminbi will be the world's new reserve currency. The dollar will be an unwanted "has-been." I've said many times that the Achilles Heel of the US economy is the dollar and its reserve status. The Chinese know that very well

At some point the US and China will be enemies in the new economic battle. To prepare for such a time, the Chinese are building their army, navy and air force. They want to impregnable in case of war. They also want to join hands with the Russians. It will be the US and Japan against the new and powerful rivals. Europe, bewildered and feeble, will be a bystander.

...sounds like he's been visiting GenerationalDynamics.com

--Fred

I agree the issue is within as we know but herd gold buyers? who knows, or cares since the blacksmith does not war with baker for long. Many understand the trade dynamic and some are starting to see that the dollar will drift to repeg and I feel the SDR is the quid quo pro olive branch which is commented on albeit narrow discussion in a few years already. Given the lack of credit growth it was no different on that context to what we seen in the late seventy's to assimilation processes kin to fur seal clubbing mid size groups as it was pushed on to the malinvestments of the cold war polemics until conclusion.
Carter gave a business credit and marked productivity gains where savagely merged to the extent of ERISA legislation later to subject and defuse albeit to late for numerous plans from predatory leverages groups. In the long run when the planned influx happens to whoevers shedule on treasury kiss from above we also witnessed we know the tide is coming in to the event horizon. Any group think is inclusive as Mises reminded to laws to planning and the solution to there usury flow we call AGI. Summers is versed in this facet also and I feel in the position since he was opined to regarded gravity since people in the dismall science understand how tall you are in that relationship called capital currency. Really the amount is inclusive to leveling over time which yes the central bank is aware off. They will concur on extent if we like or not as citizens. When the tide comes in on rates we will know there getting closer since when has Government considered what capital did not provide in a mutual regard without remanding. You know as I feel , the orphan in the market will not fare well for long but is the staff of correction amoung nations who are unwilling to progress for stability. Predicated business cycles are painfull but defined as we know. Closer to red issues what balance is forwarded, or to say they wish to go to and from in the Geo Harvesting area called the land of Cush from old.

If everyone consumed at U.S. rates, we would need 3 to 5 planets (M. Wackernagel, W. Rees, 1996). Current adjustment by far insufficient.

Never, perhaps, in the postwar decades was the situation in the world as explosive and hence, more difficult and unfavorable, as in the first half of the 1980s.
--Mikhail Gorbachev, February 1986

http://mises.org/journals/scholar/ebeling3.pdf

almost continual financial mismanagement. The government would debase the currency to cover
its expenses, followed by promises to put its budget on a sound footing, only to see another crisis
arise requiring once again turning the handle on the monetary printing press.

He details his frustrations when the articles resulted in him coming face-to-face
for the first time to opposition by government officials to reasonable and publicly endorsed
policies due to political corruption and misappropriation of “secret” slush funds that would be
threatened by implementing a fully convertible gold standard.
They may be grouped under two headings. The first consists of articles concerning the political pressures that
finally lead to putting Austria formally on the path of a gold standard in 1892, and the reasons
for the resistance and delay in legally establishing gold convertibility

[John]

-- For those people who own gold

Dear Freddy,

> From his oldness, Richard Russell:

> Question -- Russell, if there is a stampede to buy gold, how do
> you think it will start? ...

I wanted to do some further research on this, and I stumbled across
the following:

> There is a far more comprehensive summary by Eric deCarbonnel,
> that has just come out, well worth reading in which he concludes
> with the following;

> “Basically, the gold market operates on a fractional reserve
> basis. On average there are several claims of ownership on each
> gold bar conforming to London Good Delivery (LGD) standard on the
> "pool" of gold which acts as liquidity for the massive OTC gold
> trade based in London. Similarly, there are several claims of
> ownership on the gold bars in Comex wherehouses [sic]. If a
> sufficient number of market participants become concerned about
> this (which is happening) and there is a stampede to take delivery
> of physical bullion, the entire gold market will come crashing
> down, taking most of the global financial system with it. Market
> failure isn't a risk, it is a certainty. The unregulated gold
> market is an accident waiting to happen.” (Gold Market Reaching
> The Breaking Point)

> I could go on, but the main point to take away from this is that
> the ongoing gold and silver price suppression, initially via the
> dumping of physical bullion into the market and more recently by
> the use of paper trading derivatives, is possibly being finally
> curtailed by shortages of the physical metal as more and more
> investors request delivery. This in turn is uncovering fraudulent
> issues that exist within the precious metals markets which if made
> public could cause severe market dislocations and significantly
> higher PM prices. Rising gold prices will put pressure on all fiat
> currencies, not only impacting market confidence. They also
> increase the chances of precipitating currency crises and
> derivatives implosions.

> http://www.midasletter.com/commentary/0 ... llapse.php

I never realized that this was going on. Essentially, it says that
the same bar of gold is being sold multiple times to different
people, under the assumption that none of them will request actual
delivery.

For years I've been telling people that if you must buy gold, then
make sure that you take delivery. The reason was that the company
holding your gold may go bankrupt in the financial crash, and you
would lose all your gold.

But this is an even more important reason. Even if the company
doesn't go bankrupt, they possess only a small fraction of the gold
that they're holding for their customers.

I strongly urge all readers of this web site who own gold to review
your situation, because you may be in danger of losing all the gold
that you think you own. You should immediately try to take physical
possession of any gold you own, and find a safe place to keep it.

I cannot resist re-posting the following, describing the last days of
the Tulipomania bubble in the 1630s:

> "No actual delivery of tulips took place during the height of the
> boom in late 1636 and early 1637 as the bulbs remained snug in
> the ground. A market in tulip futures appeared, known as the
> <i>windhandel</i> (the wind trade): sellers promised to deliver a
> bulb of a certain type and weight the following spring, buyers
> took the right to delivery -- in the meantime, cash settlement
> could be made for any difference in market price. Most
> transactions were expedited with personal credit notes which also
> fell due in the spring when the bulbs would be dug up and
> delivered. Gaergoedt boasts of having made 60,000 guilders from
> his tulip speculations but admits that he has only received
> "other people's writing." By the later stages of the mania the
> fusion of the <i>windhandel</i> with paper credit created a
> perfect symmetry of insubstantiality: most transactions were for
> tulip bulbs that could never be delivered because they didn't
> exist and were paid for with credit notes that could never be
> honoured because the money wasn't there." (pp. 16-18)

If you substitute "gold bars" for "tulip bulbs," then nothing has
changed in 370 years. Plus ça change, plus c'est la même chose.

John

[John]

The situation in Dubai that's unfolding today looks extremely
serious. A number of European banks are badly affected, and there
could be a serious chain reaction. At this time, Wall Street DJIA
futures are down 180 points.

Other than that, Mrs. Lincoln, I hope you're enjoying Thanksgiving.

John

[aedens]

The situation in Dubai that's unfolding today looks extremely
serious. A number of European banks are badly affected, and there
could be a serious chain reaction. At this time, Wall Street DJIA
futures are down 180 points.

Other than that, Mrs. Lincoln, I hope you're enjoying Thanksgiving.

John

Long overdue for them to implode. The more you look into contract and law you will find it lacking.
The illusion wears thin that the west is capable to deal with despots. Numerous posts have been
forwarded to the leveling process. I mentioned axioms of existance to a friend to these contexts
of contracts for the last twenty years or so. The point is and remains the Northern hemisperes
harvest from the Southern if he liked it or not. Those in the middle will subject to what I alluded to
as capital raids per se. The shift is on as mentioned to market consolidations. The big three
as we know have already conveyed intent just as Carter did in 1978 to the middle regions.
Detente is already here. The current accord press release is just noise. I would wait and see
what Egypt does as proxy.