Financial topics

Investments, gold, currencies, surviving after a financial meltdown
John
Posts: 11501
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Location: Cambridge, MA USA
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Re: Dubai

Post by John »

aedens wrote: > 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.
I often have the feeling that what you write is probably brilliant,
if I only understood it, but that you write your thoughts very fast,
so they aren't always clearly explained. I don't understand anything
of the above after the first sentence. Could you explain it a little
more?

John
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Dubai

Post by aedens »

John wrote:
aedens wrote: > 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.
I often have the feeling that what you write is probably brilliant,
if I only understood it, but that you write your thoughts very fast,
so they aren't always clearly explained. I don't understand anything
of the above after the first sentence. Could you explain it a little
more?

John
http://www.sis.gov.eg/VR/NAM/english/egyhistory.html
http://english.farsnews.com/farsnews.php
Three of the Security Council's permanent members - China, France and Russia - have a track record of putting commercial interests and relationships with unsavoury regimes before the high principles of the UN's founders. NAM has economically grown up and been paying attention. The point I was trying to convey was diminitude from the Koran and its context to contract. The point is they do not fulfill them with nonbelievers or morally will they adhere to the West’s connotatation of contract. I have followed NAM for many years and implications of Capital.

The best estimates are that sovereign wealth funds have $2.5 trillion to $3 trillion in assets. Morgan Stanley forecast in 2007 that these assets could grow to $17.5 trillion in 10 years. Citigroup Global Markets said they could do so in half that time.
The Peterson Institute of International Economics says the biggest sovereign wealth funds are wielded by the United Arab Emirates, Singapore, Norway, Kuwait, Russia and China. But many experts expect China’s to become No. 1 because of the $1.3 trillion in foreign exchange reserves it has amassed from its exports.
The major concern in the West over these funds is their lack of disclosure of their assets and trading activities, potentially concealing attempts to invest for political gain or influence.
http://topics.nytimes.com/top/reference ... classifier

Numerous breech of contracts and double standards are common. The point is you have no due process and theocratic dictates are the norm.

Abu Dhabi Islamic Bank May Allow Foreigners to Buy Its Shares
By Arif Sharif

Abu Dhabi Islamic Bank PJSC (ADIB), the United Arab Emirates' second-biggest bank complying with Muslim banking rules, is considering allowing foreigners to hold its shares, its chief executive officer said.

"This is a matter that has been discussed in the past and we have been thinking about" allowing foreign ownership of our shares, Tirad Mahmoud said in a phone interview from Abu Dhabi today. "A decision will be made in the best interest of our shareholders."

Abu Dhabi Islamic Bank last year bought a stake in National Development Bank and is turning the Egyptian lender into an Islamic bank that it expects to re-brand in the next 12 months, Mahmoud said.
===========================================================================================

A Consortium - comprising of Abu Dhabi Islamic Bank & Emirates International Investment Co. has finalized the acquisition process by which it acquired (51.29%) of NBD’s shares.

The General Assembly meeting on Sept 3rd 2007 approved the increase of the authorized capital to LE. Two Billion and the increase of the paid -up capital to LE. One Billion. by the end of this year DEC. 31st 2007 & reformed the board of directors.

Austrians call this the master builder dilema and we will never know the leverages. Yes we can assume causation and we see the results. Reports do not bode well as we are seeing. It is no different than other Capital Markets leveraged beyond actual net working captial since we are in market compression. Debt has that effect does it not? Islamic Bank's generally are leveraged lower but kicking the can has effects anywhere. I would still love to see the ICE report on the currency spike last week.

Just another bubble to unwind from Keynesians on the landscape sums it up.
http://www.bloomberg.com/apps/news?pid= ... 1vnWP7gBVM
That amount represents the cost, or “funding gap,”
Meanwhile http://www.imf.org/external/pubs/ft/scr ... r09228.pdf
"The U.S. consumer is unlikely to play the role of global “buyer of last
resort”—suggesting that other regions will need to play an increased role in supporting global
growth."
Not going to happen with the same fiscal disease... The effect is the train cars under economic compression will hit the car before it since the engine is still powering down. Policy maker's clearly know this but will persist on malinvest as warned since they push the consumer as vegtables on a plate as posted in forums since the amplitude in scale is just the consequences of Fiat. As the forums indicate the SDR will perist as we have observed. The Metal market's are on Alg programs as observed. American Politic's mired in hubris does not help market either. The put to call on silver is also very manipulated.

Update from forums: Nov 25, 2009 (The Australian Financial Review - ABIX via COMTEX) -- The Australian dollar has risen against the US currency, following an optimistic assessment of the Australian economy by the Reserve Bank of Australia. Deputy governor Ric Battellino believes that the economy is in a "new upswing". The Australian dollar was trading at $US0.9263 on 25 November 2009.

Publication Date: 26 November 2009

RESERVE BANK OF AUSTRALIA
RBC CAPITAL MARKETS
CREDIT SUISSE

this was mentioned as carry
http://www.rba.gov.au/FinancialServices ... index.html
http://www.zerohedge.com/sites/default/ ... e%20GS.pdf ZH is all over it....
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richard5za
Posts: 898
Joined: Sun Sep 21, 2008 10:29 am
Location: South Africa

Re: Financial topics

Post by richard5za »

Re: Dubai

I believe that there is a good chance that the Dubai debacle will put the cat amongst the pigeons and possibly be the turning point for the Dow bear market rally since last March.
Time will tell.
Richard
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

richard5za wrote:Re: Dubai

I believe that there is a good chance that the Dubai debacle will put the cat amongst the pigeons and possibly be the turning point for the Dow bear market rally since last March.
Time will tell.
Richard
http://www.europeanvoice.com/article/im ... 66515.aspx

“With this agreement, European governments would allow the US Treasury Department to access European citizens' financial data,” in 't Veld said.

She said the agreement was a “massive intrusion into every single European citizen's privacy” and a “restraint on European sovereignty”.

Imagine a Bi Polar World. I do enjoy irony... Seek value added services. http://www.bloomberg.com/apps/news?pid= ... 3CEk&pos=1
http://www.sis.gov.eg/VR/NAM/english/egyhistory.html - http://www.nam.gov.za/background/members.htm
Dubai accumulated $80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year.


Thu Nov 26, 2009 9:19 pm Three of the Security Council's permanent members - China, France and Russia - have a track record of putting commercial interests and relationships with unsavoury regimes before the high principles of the UN's founders.

2009-11-28 05:34:06
PARIS, Nov. 27 (Xinhua) -- France and Russia settled wide-scope cooperation in fields of economy, politics, technology and culture in a meeting on Friday, with around 25 pacts signed between representatives from both sides. French Prime Minister Francois Fillon and his Russian counterpart Vladimir Putin presented the 14th session of France-Russia intergovernment seminar in Rambouillet Chateau in southwest suburb of Paris.

I do like the Swiss... Also there are Middle Eastern people who saved my brother skin in the Gulf wars and I am eternally gratefull.
There word is there bond and we know who they are. I will stick to the dollar and AUD for obvious reasons.
They will sort out there funding in Dubai and you know maybe it was time for them look inside as outside. They will be fine...
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

Grats to the Bears but theta burn on such a long weekend. ~1090 support hold, so back to productive Capital issues...
Define Trust, Acountability, and Contract to the taxpayer since you are hell bent on aversion to it. May the Voters reap what they sow.

A capitalist economy rests on people's ability to fulfill their contracts. The proponents of efficient markets can see now since evidently the future is uncertain, but the state of affairs alters when government enters the scene. If, owing to uncertainty about the future, people fear that they will lack liquidity, they will endeavor to increase their cash balances. Moral spending and investment will then focus and fall. Evidently, the future is uncertain, but somehow this state of affairs alters when the government enters the scene with the bent of mind in timeless attributes. Why should we believe this? Why assume that business confidence is so rigidly determined? Is it not rather the result of many causes that, if indeed the future is uncertain, cannot be readily specified by the defined Statist?
XXVI. THE IMPOSSIBILITY OF ECONOMIC CALCULATION UNDER SOCIALISM
“It is the two fundamental errors of mathematical economics that must be indicted. The mathematical economists are almost exclusively intent upon the study of what they call economic equilibrium and the static state. Recourse to the imaginary construction of an evenly rotating economy is, as has been pointed out, an indispensable mental tool of economic reasoning. But it is a grave mistake to consider this auxiliary tool as anything else than an imaginary construction”
He no longer deals with human action but with a soulless mechanism mysteriously actuated by forces not open to further analysis. In the imaginary construction of the evenly rotating economy there is, of course, no room for the entrepreneurial function. Thus the mathematical economist eliminates the entrepreneur from his thought. He has no need for this mover and shaker whose never ceasing intervention prevents the imaginary system from reaching the state of perfect equilibrium and static conditions. He hates the entrepreneur as a disturbing element. The prices of the factors of production, as the mathematical economist sees it, are determined by the intersection of two curves, not by human action. The problem of socialist economic calculation is precisely this: that in the absence of market prices for the factors of production, a computation of profit or loss is not feasible. Who should be master, the consumers or the director? With whom should the ultimate decision rest whether a concrete supply of factors of production should be employed for the production of the consumers good or the consumers good be? Such a question does not allow of any evasive answer.

It must be answered in a straightforward and unambiguous way.

Mises

http://taxreview.treasury.gov.au/conten ... _paper.pdf
" The more complex the system the more dependent people are on professionals, which in some circumstances may make them vulnerable to bad advice. Tax complexity can also create barriers to investments for those who do not understand it. For example, share ownership significantly complicates individual tax returns, both with dividends and capital gains. This may prompt many less sophisticated people to use financial planners, some of whom have conflicts of interest."

http://yelnick.typepad.com/politick/200 ... -debt.html

TBTF will prevail since the money pump to them precludes all else since there is no solution since they are the solution in there data induced dream world.
Even as the tiny bubbles called the middle class simply cease to exist in the Obama induced myopia the drones refuse to wake.
We shall see and we know the GD outcome. We know the hope defered paradox.
" One might ask the question, "Aren't American socialists in favor of their own country's survival?"
To answer this question, we must turn to abnormal psychology.
Mr. Summers already answered this as I am reminded. http://generationaldynamics.com/forum/v ... mers#p3829

Recall Keynes's erroneous prediction that within a century people's material wants would be satiated. When that happened, the demand for capital (to finance consumption) would plummet and rentiers (people who live on income from passive investments, such as stocks or bonds, and thus are hoarders) would be wiped out, a prospect that delighted Keynes, who looked forward to "the euthanasia of the rentier," though fortunately he did not mean this literally. He questioned free trade--that holy of holies of conventional economists--by pointing out that a country whose people had a low propensity to consume could stimulate investment by depreciating its currency so that its exports were attractive, because that would encourage its industries to invest in producing for foreign consumption and therefore to employ more workers. The country would accumulate foreign currency that it could use to invest abroad--the policy that China has been following lately, with pretty good results. He even had kind words for usury laws, arguing that they had reduced interest rates and thus discouraged hoarding. He favored a heavy estate tax, reasoning that it would increase consumption by reducing accumulation for bequests. (The standard economic argument against the estate tax is identical--it encourages "wasteful" consumption!)

http://www.islam-investor.com/en/islam_ ... board.html Meanwhile there products are expanding.
The market for Islamic Banking is growing since several years with double digit growth rates. Several studies of the rating agency Standard & Poors and the consultancy Booz & Company evaluate combined assets of Islamic Banks to be nearly 500 billion US Dollars at the end of 2008. During the last 10 years, Islamic Banking has grown by 20% per year and there are no signs that the speed of growth will decrease.

Basically, contract entails no gratitude but a defined quality and quantity of work. This is the Austrian on older regards in the division of labor mindset and why. Earlier posts convey this aspect also. Of course you can see the friction analogy's everyday. I can see imprints and complications but the contract "product" managers can level this so the issue is really influence. To be simplistic, an Islamic concordance to say such as an economic Nicene Creed to there products for the common good as we would say. Given the duration of contract's to date there decision was based on leverage calculations and maybe a time out was needed and the West's interpetation or bent of mind was a typical reflex action given the level of conveyances. Really the "product" may or may not be what we want to interpet but they will decide and should be a object lesson for both interest's on the evolution of sound finanace which they have been moving on over the century's. They can figure it out "entrepreneur" since the market or Political Economy will only interfere with contract of implication already known to us as sediment of market trade based on what information which is another cultural gravity over time since who and his money is soon parted?
Meanwhile,
http://finance.yahoo.com/news/Food-bank ... 2.html?x=0
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ridgel
Posts: 75
Joined: Fri Feb 20, 2009 1:33 am

Re: Financial topics

Post by ridgel »

Hi John and Forum Members,

I have followed the GD site for over a year now, and it is some of the most unique and interesting commentary available. I wonder if John could address some of my questions in the forum or in an upcoming post:

On the inflation vs deflation question - I've thought about this a lot over the last 5 years or so, and tried to do it with as clear a head as possible since it will affect my family so drastically either way. The points I keep coming up with are that true inflation/deflation is a monetary phenomenon. Meaning that if clothes and cars get cheaper because it's more efficient to make them, and people spend the savings on a larger house, that's not a loss or gain for the economy - it just means more people will swing hammers instead of sewing shoes. But if debt becomes too large, and people start defaulting on it, that reduces the money supply, which will cause more people to default, etc. That type of deflation used to happen every 7 years or so in periodic "panics" under the gold standard, and after the bad debt was written off, the system started over again with a relatively low level of debt.

So with the advent of the Federal Reserve and Fiat money this periodic debt cleansing has been postponed, and as a result, the total amount of debt relative to GDP has grown to levels never seen before - 350% or so. Every dollar of that debt must pay interest. So to avoid default, enough new money must enter the system each year to cover that interest. In the current case I estimate that it's 350% of GDP times 5% average interest => ~17% of GDP. As long as the Federal Reserve can loan that amount of money into existence, either to its member banks, or directly to the Federal Government, the system will stay afloat. As soon as they can't, the defaults will start. So 17% of GDP works out to roughly 2.5 Trillion dollars, which is roughly close to the amounts you hear about the unaudited Fed lending to banks. The Fed can also attempt to lower average rates (I assumed 5%, that may be slightly high) by buying treasuries directly, and they have been doing this. Every dollar of debt that pays zero percent interest has the advantage of not requiring any new money created every year to support it.

So my question is, first do you see an issue with my reasoning - not the exact numbers, but the overall math and particularly the cold fact that every dollar of interest requires new money created to avoid default? Second, if the assumptions are correct, what is the triggering factor that stops the Fed from creating the required amount of new money? Two possible mechansims I can see are 1. Congress prevents more debt issuance, stopping borrowing from the Fed. This seems unlikely given how corrupt Congress is, how much money they get from Wall Street, and how little they want to face the blame for stopping the debt party. 2. Overseas investors stop buying dollar debt and the dollar plunges. This seems far more likely to me, if not this year then some time. It only takes one country to break ranks and decide to convert their dollars while they can. France tried this in 1970 - why wouldn't another country try today, especially if faced with political pressure on why they were restricting their own domestic spending to support U.S. spendthrifts. If this happens, there would be deflation (devastation) of financial assets, as bond rates rose and all other asset prices sank correspondingly. But manufactured goods and useful commodities would rise in price, mirroring the dollar's fall. So from a U.S. Citizen's point of view, any stocks or bonds or real estate they held would get crushed. But U.S. workers and production would immediately become more competitive, and a worker making furniture or semiconductors or a mine owner would see their import competition decline and their exports rise.

Thanks for listening. I appreciate your site.

-Rob
The Grey Badger
Posts: 176
Joined: Sat Sep 20, 2008 11:50 pm

Re: Financial topics

Post by The Grey Badger »

I'm going to chime in here. The discussions of inflation vs deflation and the strength or weakness of the dollar have had very little power to scare me, since they seem mostly abstract and since hyperinflation seems quite unlikely to me because we're in a prolonged recession.

However, I did read a posting which scared me - I think it was on Fourth Turning (or was it here? My mind for precise details resembles something you strain the spaghetti through) and it involved something Argentina did during an economic crisis (Crisis? Or shakedown? I have even forgotten the year - 1981? because of the huge emotional imprint the facts left me with) -

They decided to settle the economic problems by suddenly freezing everybody's assets, not saying for how long, and allowing enough withdrawal to keep people eating. Meaning -

They couldn't pay their bills, their rent, or their mortgages. Small businesses and professional practices couldn't pay their expenses. Now, nobody's going to foreclose or cut you off or evict you for nonpayment when it's nationwide unless (1) they're totally stupid (2) they want to get rid of you or (3) they have to get rid of you. That is, the landlord needs your room for his unemployed sister and her children, who lost her job as an office nurse when the doctor couldn't pay her. What they'd do would be accept your IOU but pile on the interest (and the interest on the interest) and the late charges with the smug observation "Well! They're not PAYING, are they? They're LATE, aren't they?"

Five months later, IIRC, the government suddenly devalues the peso,. so that the frozen assets you've been borrowing against are now worth a quarter of that they were. And then the vultures swoop in with their IOUs and snap up a lot of properties (and everything you had in the bank) at fire-sale prices.

Now, that's a marvelous way to trash an economy more thoroughly than anything Evita Peron might have pulled. I'd like to think our own government wouldn't be that stupid. However, I remember reading that Ayn Rand didn't invent a single Directive when she wrote Atlas Shrugged: she reached into the file of New Deal history and pulled out what she wanted. This, of course, being before the days when everything was classified including the sun rising in the east and the North winning the Civil War. If she'd had to go through the Freedom of Information Act to get the material... (shudder).

On the gripping hand, FDR was improvising all over the place, with less strategy than George Bush and Bill Clinton combined. [Clinton has a fine strategic brain. She's now Secretary of State.] Obama strikes me as more like Lincoln - yes, and like Hoover - a careful planner who acts only when he has his plan completely thought through, with backup plans A-Z on hand. [Though if so, he needs to have a tactical genius on hand very close to the top who can improvise like a jazz virtuoso.]

So anyway - that scenario alone started me back on the food storage program and recipe search again, courtesy of something called the Prepper's Network, who seem to be expecting Armageddon.

Any comments, John? Or are these the paranoid ramblings of a senile Silent?
John
Posts: 11501
Joined: Sat Sep 20, 2008 12:10 pm
Location: Cambridge, MA USA
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Re: Financial topics

Post by John »

ridgel wrote: > The points I keep coming up with are that true inflation/deflation
> is a monetary phenomenon.
This is true, but you also have to point out that inflation/deflation
depends on two factors -- the money supply and the velocity of money.
The money supply is monetary policy, but the velocity of money
appears to be a generational variable. The velocity of money was
very high among the Great Depression survivors, but in the 1970s, two
generations later, the velocity of money was extremely high. Since
then the velocity of money has been gradually falling, and is very
low now.

This leads to what is called the "liquidity trap." The Fed can
increase the money supply by lowering effective interest rates to
zero, as it has done, but we're in a deflationary spiral anyway,
because the velocity of money keeps falling.
ridgel wrote: > So my question is, first do you see an issue with my reasoning -
> not the exact numbers, but the overall math and particularly the
> cold fact that every dollar of interest requires new money created
> to avoid default? Second, if the assumptions are correct, what is
> the triggering factor that stops the Fed from creating the
> required amount of new money?
This is mostly true, but you might also wish to reread the articles
that I wrote on the presentations of Richard C. Koo, Chief Economist
at Nomura Research Institute:

** Fiscal stimulus programs in 1930s and today
** http://www.generationaldynamics.com/cgi ... 01#e090401


** The effects of massive fiscal stimulus - Part II
** http://www.generationaldynamics.com/cgi ... 12#e090112


** The effects of massive fiscal stimulus.
** http://www.generationaldynamics.com/cgi ... 24#e081224


As Koo points out, there is a path by which fiscal stimulus money
issued through debt comes back to the Treasury during a deflationary
spiral, through the purchase of Treasuries. This still incurs debt,
but the debt is owned by the banking system, rather than by foreign
countries.
ridgel wrote: > If this happens, there would be deflation (devastation) of
> financial assets, as bond rates rose and all other asset prices
> sank correspondingly. But manufactured goods and useful
> commodities would rise in price, mirroring the dollar's fall. So
> from a U.S. Citizen's point of view, any stocks or bonds or real
> estate they held would get crushed. But U.S. workers and
> production would immediately become more competitive, and a worker
> making furniture or semiconductors or a mine owner would see their
> import competition decline and their exports rise.
If I understand you, you're describing an inflationary scenario.
However, as deleveraging continues, hundreds of trillions of dollars
in money created by structured debt is being destroyed, leaving less
money in the world, creating a deflationary spiral. I've been
predicting deflation since 2003, while mainstream analysts have been
predicting inflation since 2003, and have been continually wrong.
Hyperinflation makes no sense whatsoever, once you think about what's
happening in the world.

John
John
Posts: 11501
Joined: Sat Sep 20, 2008 12:10 pm
Location: Cambridge, MA USA
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Re: Financial topics

Post by John »

Dear Pat,
The Grey Badger wrote: > They couldn't pay their bills, their rent, or their mortgages.
> Small businesses and professional practices couldn't pay their
> expenses. Now, nobody's going to foreclose or cut you off or evict
> you for nonpayment when it's nationwide unless (1) they're totally
> stupid (2) they want to get rid of you or (3) they have to get rid
> of you. That is, the landlord needs your room for his unemployed
> sister and her children, who lost her job as an office nurse when
> the doctor couldn't pay her. What they'd do would be accept your
> IOU but pile on the interest (and the interest on the interest)
> and the late charges with the smug observation "Well! They're not
> PAYING, are they? They're LATE, aren't they?"

> Five months later, IIRC, the government suddenly devalues the
> peso,. so that the frozen assets you've been borrowing against are
> now worth a quarter of that they were. And then the vultures swoop
> in with their IOUs and snap up a lot of properties (and everything
> you had in the bank) at fire-sale prices.
I'm not familiar with the particular Argentina incident you're
describing, but it illustrates what I believe to be the general point
that the only way that hyperinflation can destroy an economy is if
destroying the economy is the specific objective of the government.
That's what happened in the hyperinflation cases of Zimbabwe and the
Weimar Republic.

I've thought of a new way to explain this. Suppose you have a
bathtub with water, and you start dumping buckets of more water into
the bathtub. Then, the tub will fill up and overflow.

But now suppose you dump buckets of water into the ocean. Then you
won't have any effect at all, because your buckets of water are tiny
compared to the amount of water already in the ocean.

When the Weimar Republic and Zimbabwe started expanding their money
supply, then they were like the bathtub analogy: They were pouring
buckets of money into a relative small bathtub of money.

But in the case of the US today, there are huge oceans of money all
over the world, and so "printing" more buckets of money does little to
affect the total amount of money.

Meanwhile, thanks to deleveraging, those oceans of money are getting
smaller, and the buckets of money being added can't keep up with the
amounts that are disappearing.
The Grey Badger wrote: > So anyway - that scenario alone started me back on the food
> storage program and recipe search again, courtesy of something
> called the Prepper's Network, who seem to be expecting
> Armageddon.
Not a bad idea. You'll probably outlive all of us.
The Grey Badger wrote: > Any comments, John? Or are these the paranoid ramblings of a
> senile Silent?
Well, I'm not sure how much help I am, given that I'm an increasingly
senile Boomer.

Sincerely,

John
shoshin
Posts: 211
Joined: Sun Sep 21, 2008 4:05 pm

Re: Financial topics

Post by shoshin »

ok, I love this...the headline reads...

"Manufacturing in U.S. Expands for Fourth Month "
http://www.bloomberg.com/apps/news?pid= ... 0eYo&pos=2

...and the text says,"The Institute for Supply Management’s manufacturing index FELL to 53.6, LOWER than forecast, from October’s three-year high of 55.7, according to the Tempe, Arizona-based group. Readings above 50 signal expansion." (my emphasis)

...so, the last sentence makes it just fine that the index fell, and fell more than expected, but manufacturing is expanding? This is nutty.
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