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Are we calling this a win for fp, then?

 

I think we have to wait for New York trading to kick in. So far G&S aren't up a great deal from last night's open. (yes, I know, if they "only" went up like this every day, it'd be great...). But let's not get ahead of ourselves! :)

 

(back in January I would've said "hell yeah!" and bought another £100k of Silver ... but I found out the hard way that bulls sometimes get stroppy and reverse over you! :D)

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Along the same vein, does anyone think there's merit to a prediction thread, where people can post predictions over a specified timescale, which can be measured and tallied for kudos?

 

Have you seen this ?

 

When will gold reach $1000, $1200 & $10,000 ?, The winner wins a chocolate gold coin (virtually)

Started: Mar 7 2008

http://www.greenenergyinvestors.com/index.php?showtopic=2882

 

I'm offering 'real' money. Well fiat, if you can guess closet to the $10,000 date :D

 

from this overview of polls thread:

http://www.greenenergyinvestors.com/index.php?showtopic=3210

 

It's quite interesting reading threads like that after a few months.

 

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If default implies an Argentina-like scenario, that would leave us with only two options. The first is to print money; Mr. Williams says this would lead to “hyperinflation on the order of 1920s Germany.”

 

The other option is to eliminate Medicare and Social Security.

 

I tend to think this theme about 'unfunded liabilities' is mainly appealed to by people who are violently opposed to any form of welfare and want to try to reverse even the small amount of wealth redistribution that exists in the US system.

 

The thing about 'future commitments' is that they will constitute a redistribution of future income - the people paying tax now are funding current Medicare and Social Security, and the people paying tax in future will be funding future Medicare and Social Security. So talking of 'unfunded commitments' is a slightly hysterical red herring.

 

Of course there may be problems with such redistribution if the economy collapses too badly, but there is no sense in adding those future commitments onto current debt and scaremongering about it.

 

 

 

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I tend to think this theme about 'unfunded liabilities' is mainly appealed to by people who are violently opposed to any form of welfare and want to try to reverse even the small amount of wealth redistribution that exists in the US system.

 

The thing about 'future commitments' is that they will constitute a redistribution of future income - the people paying tax now are funding current Medicare and Social Security, and the people paying tax in future will be funding future Medicare and Social Security. So talking of 'unfunded commitments' is a slightly hysterical red herring.

 

Of course there may be problems with such redistribution if the economy collapses too badly, but there is no sense in adding those future commitments onto current debt and scaremongering about it.

The point is that due to population demographics, if we continue to tax and spend at the same rates, future tax incomes aren't going to be enough to govern future public spending. The same will also apply to pension annuities. Western europe has the same issues.

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The point is that due to population demographics, if we continue to tax and spend at the same rates, future tax incomes aren't going to be enough to govern future public spending. The same will also apply to pension annuities. Western europe has the same issues.

 

That's a different issue, and one that also needs to be addressed. It's likely to mean people working till later in life for instance, if the continuing age and birth trends continue. And in the UK we are already seeing the kinds of issues about rationing in the health service that will be created by people living longer and expecting expensive treatments. If future generations can't make the redistribution then inevitably there will be structural changes in the future in terms of how income is redistributed, and how medical welfare is administered.

 

The unfunded liabilities argument is different - it asserts that we can't possibly save up the $60 trillion needed to fund future commitments so we should cut or reduce Medicare and Social Security now. It is an intentional blurring of the future redistribution with current deficits in an attempt to attack the idea of redistribution.

 

It also ignores the fact that we are likely to have inflation over time, by costing future commitments in current nominal prices in a misleading way.

 

My feeling is that there are genuine issues about future funding for welfare programs, but they are not nearly as black and white as the 'unfunded liabilities' argument makes out.

 

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So Gold's struggling to punch through $900, and Silver's stuck at $13.33333

 

Does anyone think that maybe, just *maybe* in the TA world we've got here a little too quickly?

 

I appreciate there was a blip over $900 last week - but it didn't last long.

 

The fundamentals are there, stronger than ever, but I fear in the eyes of traders a pullback is needed before we can advance further.

 

 

Or maybe I'm spouting utter tosh. :rolleyes:

 

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Given the likely fall of the dollar, is it better to hold gold in $ or £ or euros?

:)

 

You don't hold gold in any currency. Gold is gold. It is its own currency. Sure, it's priced in different currencies (and the FX rates change constantly) - but it is *just* gold.

 

 

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So Gold's struggling to punch through $900, and Silver's stuck at $13.33333

 

Does anyone think that maybe, just *maybe* in the TA world we've got here a little too quickly?

 

I appreciate there was a blip over $900 last week - but it didn't last long.

 

The fundamentals are there, stronger than ever, but I fear in the eyes of traders a pullback is needed before we can advance further.

 

 

Or maybe I'm spouting utter tosh. :rolleyes:

 

 

Nothing goes up in a straight line. Between now and 2011 (target price in excess of $1650 an ounce) we will have swings of $100 or more in a day. This is going to be one hell of a wild ride.

 

This is why you shouldn't play the gold market on margin. It will kill you.

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