InternationalRockSuperstar

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As for Yen, dollar, pound I don't think they'll even lose 10% of their value against assets. Rather, assets will depreciate against them.

?

what do you mean by assets?

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Do you imagine that foreigners were all flying to Germany to buy potatoes?

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do you imagine that federal gov't employees do not buy food with their wages?

do you imagine that the 40 million americans on food stamps don't buy food with their food stamp cards?

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imo the two things to watch if concerned about hyper-inflation are:

 

1] Watch unemployment... if everyone suddenly gets a job then maybe hyper-inflation is around the corner.

 

2] Watch bond markets.... if the yields reverse and go up radically, the monetary authorities might finally and completely lose the plot.

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1) Zimbabwe had hyper-inflation and 80% unemployment SIMULTANEOUSLY.

2) with so much state intervention in the bond 'market' ( ) you ain't gonna get a meaningful price signal out of the yield.

Isnt the 28th futures expiry day ??

ah, ok - makes sense now!

Who TF stole it??

insiders I guess. all sounds a bit dodge.

Hey

 

I actually had a timetable somewhere for the events - there was something about an IMF placeman being put in and the russian politicians stopped playing until he was gotten rid of. I'll try and find it between beers tonight.

[beer drinking]

http://research.stlouisfed.org/publication...hiodoOwyang.pdf

April 24, 1998 Duma finally confirms Kiriyenko’s appointment.

Early May 1998 Dubinin warns government ministers of impending debt crisis, with reporters in the

audience.

Kiriyenko calls the Russian government “quite poor.”

May 19, 1998 CBR increases lending rate from 30 percent to 50 percent and defends the ruble

with $1 billion.

Mid May 1998 Lawrence Summers not granted audience with Kiriyenko.

Oil prices continue to decrease.

Oil and gas oligarchs advocate devaluation of ruble to increase value of their exports.

May 23, 1998 IMF leaves Russia without agreement on austerity plan.

May 27, 1998 CBR increases the lending rate again to 150 percent.

Summer 1998 Russian government formulates and advertises anti-crisis plan.

July 20, 1998 IMF approves an emergency aid package (first disbursement to be $4.8 billion).

August 13, 1998 Russian stock, bond, and currency markets weaken as a result of investor fears of

devaluation; prices diminish.

August 17, 1998 Russian government devalues the ruble, defaults on domestic debt, and declares a

moratorium on payment to foreign creditors.

August 23-24, 1998 Kiriyenko is fired.

September 2, 1998 The ruble is floated.

every bankrupt country in history that has had the option to print (has the debts denominated in its own currency and has someone around to press the button on the printing press) has chosen to print rather than default.

 

every country in history.

 

no exceptions.

"No exceptions?"

What is the UK? How long has Sterling been around?

That's long enough for most of us, isn't it?

the UK has always chosen to print rather than default.

which is exactly my point.

oh, and Sterling in its current form has been around about 4 decades.

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Now, as for every country, I think Russia defaulted on Ruble(!) bonds in 1998.

yeah, that one always puzzled me:

As far as I know, the politicians were scattered over the country on holiday and the new parliament didn't react in time to give the order to print. Add some IMF chicanery and stew for 15 minutes over an irate public.

http://en.wikipedia.org/wiki/1998_Russian_financial_crisis

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It was later revealed that about $5 billion of the international loans provided by the World Bank and International Monetary Fund were stolen upon the funds' arrival in Russia on the eve of the meltdown.

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every bankrupt country in history that has had the option to print (has the debts denominated in its own currency and has someone around to press the button on the printing press) has chosen to print rather than default.

every country in history.

no exceptions.

There is a process... There would be one hell of a fight in Congress over it.

and that process needn't involve Congress at all e.g. a Presidential Executive Order.

I doubt an EO will be needed. Congress gave $700 bn to Paulson with very few strings attached. I would guess they will give Geithner at least $2 trillion.

What is Geithner to ask for this time? A tank?

no, the US gov't already has enough of those. and the rest.

you can't print tanks anyway.

And at a time political opposition is effectively mobilized... the Fed knows they're on thin political ice.

the only thing that matters is that the population carries on having no real way to fight back.

There are things such as political realities. Here is Obama today on FinReg:

 

"Because of this bill there will be no more tax-funded bailouts! Because of this bill the American people will no longer bail out the banks! Period!"

yay, another bullshit promise for him to break.

Looks like they've painted themselves into a corner. The government will be ripped to pieces [at the polls] by a very angry populist movement if they went against this.

the political reality is that the US gov't has crushed every populist uprising since the american revolution, staring with the Whiskey Insurrection in 1791.

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Goldman said it still believed gold prices will decline beyond 2011 once the U.S. Federal Reserve tightens monetary policy and recommended producers consider selling their production forward.

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It always seems to me that the purpose of your posts is to, in some way, violently replace our own thoughts with your own ones which you have decreed are the correct ones.

 

Dr Bubb is the government here on this board. He violently removes offending posts and posters.

 

your posts never seem to invite discussion. You just seem to decree the truth and then object to all reasons why you can be wrong.

 

A market for example is made of people. People have natural leaders. Some are born leaders and others can grow into the role. But it appears you have some while back decreeded that only individuals matter and that only slaves have leaders.

 

Which then brings me back to the way you come over as a tyrant who wishes to impose his reality upon others.

 

I have tried to talk to you about this before but it appears i cannot get thru your latin based pre programmed filter that produces the text 'ad homiem'.

 

Essentially you appear to follow a philosophy of anarchism but you dont seem much interested in philosophy or love or learning which suggests that rather than being philosophical you are close minded and prefer to create your own knowledge.

the green craps are ad homs.

the blue is incorrect. a gov't is a violent monopoly which retains the monopolistic 'right' to initiate force against the innocent across a particular territory. this is quite obviously not what Bubb is doing!.

Disagee. With Hobbes on this one. In a state of nature "the life of man is solitary, poor, nasty, brutish and short". The homo economicus of modern economics is an ideological [though useful] construction, yet if taken too seriously becomes a complete distortion and caricature of ourselves.

the gov't funds its operations by extorting wealth from those who create it.

a parasite needs a hosts.

markets came first, then gov't. otherwise the gov't would have nothing to steal!

Countries, with all their rules and regulations, provide the very conditions for markets to exist.

nonsense.

the markets exist first.

then the statists come along to try to take a cut of each transaction, by force.

Otherwise, you'd just have barter or pillage. I wonder if by "free markets" you're really referring to barter.

FFS stop repeatedly posting this false dichotomy of 'gov't imposed currencies' or 'barter'

no gov't involvement is required to produce a liquid, widely accepted currency.

 

e-gold had 5 million accounts and growing, before the statists made their excuses and shut it down.

the purpose of gov't is for those in gov't to pillage those who are not.

This will also involve the demise of market fundamentalism, which allowed currencies to float freely in the market.

fiat (government imposed) currencies have nothing to do with free markets!

the demise of fiat currencies is clearly a failure of statism.

bought some more today.

Below is an article suggesting that Gold is in bubble territory. I agree

 

 

http://www.smh.com.au/business/gold-price-...00628-zca1.html

 

Gold price a bubble waiting to pop

June 28, 2010 - 6:25AM

 

 

 

Want a bubble to worry about? According to Macquarie Bank interest rate strategist Rory Robertson, forget Australian house prices and US Treasuries, it's gold that looks due for a pop.

 

Fresh from winning his bet on Australian housing prices, Robertson is taking on a much more rabid bunch in the gold bug faithful - a broad church that ranges from the inflation-fearful to the Armageddon brigade forecasting the end of civilisation as we know it.

 

But Robertson argues that most people now betting on gold going up are doing so just because gold has gone up - the very stuff of bubbles. Rather than worrying about US Treasuries or Australian house prices (he doesn't see a bubble in either of those assets for fundamental reasons), punters should be sceptical of gold around US$1,250 per ounce, almost quintuple its early 2001 price of US$260.

and like most deflationists he is very careful to qualify his predictions. he goes on to say (from above link):

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the price of gold over time could jump to multiples of its current elevated price

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A collapse of the US$ or of the global system of ''fiat'' (paper) money - both rather unlikely events, in my opinion - would drive the gold price much higher

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Robertson admits one has to be careful about bagging gold bugs because for a decade they have been right - gold has been a standout performer.

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Can you see BV selling a stake to the son of BM. I can't.

you've avoided the question.

so what's you answer? would you call that person anti-semitic or not?

They have a business to run, and will appeal to mainstream money. Let's face it, some of the concerns here are on the fringe. This is not to say these fringe concerns might not one day go mainstream.

ah, but investment in gold is largely on the fringe also.

<<So I am genuinely sorry, and can only wish you the best, if the tomfoolery that passes for "gold analysis" on the web makes you view this fantastic news as part of the cabal's grand plan.>>

 

Well put, Sir! A successful business can ignore the prattle of bigots and conspiracy theorists.

genuine concern about involvement in BV from a specific family with a shady history is not bigoted.

and if BV can ignore this concern then why are they posting on internet forums trying to ridicule any critism of the Rothschild using tenuous links to David Icke?

now here's a question for you, Wolf:

if Bernie Madoff's son aquired a stake in BV and someone consequently withdrew their funds from BV due to concern over the family's track record, would you call that person anti-semitic?

So I am genuinely sorry, and can only wish you the best, if the tomfoolery that passes for "gold analysis" on the web makes you view this fantastic news as part of the cabal's grand plan.

but it's not about analysing gold; it's about analysing the trustworthiness of a particular banking dynasty. most people here expect the gold price to move higher longer term, but that isn't the issue here.

if for some reason you have a problem using the web as a source of information, there are plenty of books and newspaper articles on the matter.

Still, I'll confess - it is nice to feature on David Icke's website at last!

http://www.davidicke.com/headlines/35432-l...o-bullionvault-

and if you click on the link, you'll see that it's just another link to a Telegraph article - so a bit weird for Adrian to have chosen to post the link via Icke's website, no?

'oh look it's on Icke's website so it must not be true' is a slightly childish argument, tbh.

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You are on an island, there are 100 apples.

There is $500 in existence on the island.

 

What is the maximum price of an apple?

 

Answers please

what if the dollars aren't worth anything to anyone?

I am not surprised that you are one of those who oppose Rothschild's involvement, Schaublin, in view of this recent post of your's:-

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BV depositors should be more concerned with analysing the character of their new shareholder, rather than analysing Schaublin's.

Before I transferred funds to BV some years ago, I did enough research into the company to satisfy myself that it was a sound proposition with honourable people in control. Edit: Now that there is a new element involved, it would require me to do similar time consuming research - I prefer not to do so.

how much more research do you need to do to figure out the Rothschilds are evil sh1ts!

I worry, that Gold's long recent record of being a good store of wealth

may soon take another "hit" like it did in 2008.

The times we live in are not friendly to Buy & Hold, and maybe not even in the Gold sector

people who buy and hold gold shouldn't worry about a repeat of 2008.

after all, in the year 2008 gold closed 3.4% higher in dollars and 44% higher in pounds.

I wonder how many sleepless nights Paul Tustain will have become some people refuse to keep their accounts with a company that has Jewish shareholders. My guess is none.

how many of the people withdrawing funds from BV due to Rothschild involvement are doing so because of the Rothschild's (alleged) religion.

my guess is none.

the family is (rightly or wrongly) notorious for shafting people - and people don't want to get shafted. it's that simple.

Concerns about bank failures and hoarding money is deflationary!

nope.

moving cash from a bank vault to your mattress is not deflationary (and it's not inflationary either).

and besides, most of the cash currently under people's mattresses wasn't even in the bank vault to start with - the gov't has printed it to 'hide' banksters' fraud/insolvency - this is inflationary.

The extension of credit affects the behaviour of all borrowers and the exisitng stock of money.

extending bank credit does not inflate the money supply, but changes people's behaviour by misinforming them.

Think of credit as "anti-money" if you must insist that only cash can be money.

er,no, don't think of bank credit as 'anti-money' because it isn't.

think of bank credit as lies that get work done.

[facepalm] it's not me that insists that - it's legal tender laws!

bank credit is a derivative of legal tender. like most other 'simple' derivatives, it will trade at the value of the underlying product, so long as your counterparty is good for the money.

Money created ex nihilo, on the willingness of debtors, is destroyed when it pays down debt.

if you transfer money from debtor to creditor then the money still exists!

it's a change in ownership of the money; not a change in supply.

A purely cash-based economy, such as Weimar was...

please stop repeating this misinformation.

I have seen GF correct you on this on several occasions, so you ought to know better by now.

If the trillion dollar bailouts/ stimulus didn't work... what makes you think a few more hundred billion will??

'work' is bit vague, can you be more specific?

Put your own axioms and theorems aside for the moment, go outside the cave of your own cogito, and observe what is going on in the real world. You might see the light.

yes - and if all else fails, then just accuse me of living in a cave - that'll work!

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While I'm here IRS you wrote somewhere back I think in this thread that inflation can be created by those that have the money or words to that effect. Could you elaborate on that please.

the inflation is not caused by those who have money (as in cash) but by those who create money i.e. the seignior(s), the people with the printing press.

however, the exact point in time at which the currency becomes worthless often depends on when those hoarding cash decide dump their cash holdings. in our case that would be the people hoarding £50 notes and the people hoarding £10 and £20 notes.

Mises' crack-up boom:

http://www.dailyreckoning.com.au/crack-up-boom/2007/06/26/

This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.'

"But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against 'real' goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.