GOLD

[Steve Netwriter]

[Tin foil hat: ON!]

 

I am fascinated by trying to spot correlations between the situation we're currently experiencing and other economically interesting times -- particularly between 1900 and 1930 or so.

......

 

I've started a new thread on this based on your post

 

http://www.greenenergyinvestors.com/index.php?showtopic=4350

 

I hope that's OK.

 

 

 

[creditcrunch]

Back to gold...

 

Could we have some more rockets and parabolic chat, that time of the month were I buy gold... I always need a little push.

 

Gold above £500 before year end?

[G0ldfinger]

... They are also out of all bullion decimal sovs except the more expensive 2008.

Not good. These are the coins I usually buy.

[Dispassion]

I don't really expect Bush to understand the world of finance and economics, but he really looks lately (even more than normal) like he's just reading words out loud when he's making a speech.

 

He makes it look SO obvious that he doesn't have any clue about what he's saying.

Yep, and I would add Bernanke and Paulson to that.

 

I think this is a little over the top, if Bernanke and Paulson don't, then who does?

In my view, the current situation isn't one that wasn't easy to avoid and the problem is as much a political one as one of finance.

[romans holiday]

Yep, and I would add Bernanke and Paulson to that.

 

I think this is a little over the top, if Bernanke and Paulson don't, then who does?

 

Not at all. Reality is biting... we have been living in a bubble world as surely as poor Truman Burbank.

 

This thing is out of control. No-one fixes it... the more they try the worse it will become. It is medicine taking time.

 

 

Edit: Oh wait.... is it too late for Ron Paul to be president?

He will make us take the medicine.

[Steve Netwriter]

Headed for a Sudden Stop

http://www.itulip.com/forums/showthread.ph...49922#post49922

 

iTulip has since 1999 has warned that in a protracted financial crisis the US, a net debtor, is vulnerable to withdrawal of foreign capital and capital flight, producing inflation and a severe economic contraction known in the economics literature as a Sudden Stop.

 

We called our theory Ka-Poom Theory. It defines two distinct crisis periods. One, a six to 12 month period of disinflation (Ka) that typically proceeds a sharp inflationary (Poom) period of repatriation of capital by foreign investors and capital flight by residents. Repatriation and flight both cause and result from currency depreciation in a rapid, self-reinforcing process.

 

In light of recent events, a subscriber recently asked how a disinflationary “Ka” crisis period such as we are experiencing during this financial crisis can turn into an inflationary “Poom” as foreign investment dries up and capital flees. In response, I provided the explanation below based on research I am doing for a book. In light of today’s events, I thought I’d share it with readers generally.

 

I wonder where some of that capital flight might go ?

Can anyone suggest somewhere ?

 

Hmmm, maybe gold

 

[Dispassion]

Not at all. Reality is biting... we have been living in a bubble world as surely as poor Truman Burbank.

 

This thing is out of control. No-one fixes it... the more they try the worse it will become. It is medicine taking time.

 

 

Edit: Oh wait.... is it too late for Ron Paul to be president?

He will make us take the medicine.

 

It much worse than that, it really needs fixing. If no one tries to fix it then where do we end up? A total collapse of the global financial system resulting in a massive decrease in global productivity.

[romans holiday]

It much worse than that, it really needs fixing. If no one tries to fix it then where do we end up? A total collapse of the global financial system resulting in a massive decrease in global productivity.

 

Is that really so terrible?

 

There is more to life than productivity. That is something you would hear from Bolcheviks.... hmmm... or economists.

 

A crash may bring about a more salubrious society where people would live within their means... and know their needs instead of their wants.

[warpig]

Does anyone know who goldismoney and bullionvault bank with? Is there a risk here?

[allyjcambo]

I believe BV banks with Lloyds TSB, at least that’s where I fund my BV cash account.

[Goldilocks]

Whoops rumours

 

what would this do for physical gold/silver if they pay out in paper

I'm hoping the TSHTF ,doesn't happen before the gold silver ratio goes down

i wanting to converted my allocated silver (with serial nos paper silver) to physical delivery of gold from the Perth mint

i see also in the small print that if they can't supply physical metals they will pay out in paper WTF

 

 

 

 

Trader Dan

 

 

Comments On Comex Gold Contract Rumors

 

 

Author: Dan Yorcini

 

 

 

 

Dear Friends,

 

My inbox is being inundated with emails from many who are repeating claims made by some gold web sites that the Comex Gold contracts are now going to be settled as cash-only contracts in effect depriving buyers of the opportunity to take physical delivery of gold bullion.

 

I cannot verify these reports nor do I see anything from the exchange stating anything to this nature. As far as I can see, no changes whatsoever have been made to the Comex delivery process.

 

I have contacted the exchange to see if I can find any further information but let me state the following:

 

The NYMEX, through the CME, offers TWO CASH SETTLED GOLD CONTRACTS, one is ASIAN GOLD which is a 1,000 gram sized contract with a minimum tick size of $0.005 per gram. The second gold contract is the mini gold contract, which is 50.0 ounces in size and has a minimum tick fluctuation of $0.25. These and only these contracts are cash settled, not the full sized Comex gold contract. If there has indeed been a change in the specifications of that contract, I believe the exchange would have let it be known clearly. So far I see no evidence of that.

 

If I do find out that a change has been made, I will let it be known to the community of readers. For now, it is business as usual with that contract and buyers may take delivery of physical gold if they prefer.

 

Dan

http://www.jsmineset.com/ARhome.asp?VAfg=1...#036;6712$

[Dispassion]

Is that really so terrible?

 

There is more to life than productivity. That is something you would hear from Bolcheviks.... hmmm... or economists.

 

A crash may bring about a more salubrious society where people would live within their means... and know their needs instead of their wants.

 

If it's a controlled decrease in productivity, then problem isn't as large, but this requires intervention, which is what you argue is counter productive.

 

If it's a massive decrease in productivity due to a failure of the global financial system then it's time to think about which 'necessities' you're prepared to do without and what this means for people who don't have the 'necessities' already.

 

The point is, the free markets have failed, they can't fix themselves or the problems they've caused, it requires people to fix the problem now and this, inevitably, means larger states, or standards of living will seriously suffer.

[romans holiday]

The point is, the free markets have failed, they can't fix themselves or the problems they've caused, it requires people to fix the problem now and this, inevitably, means larger states, or standards of living will seriously suffer.

 

The policies of politicians have failed not the "free market". This mess has been caused primarily by Greenspans incredibly stupid monetary policy of setting the price of money too low. This in turn over-inflated the housing market. They have been literally living on borrowed time and should have taken the recessionary medicine years ago. If the markets had been left to price money, as Ron Paul suggests, we would never have had such a debacle.

 

The more they interfer and attempt to reflate the housing market, which is essentially price-fixing, the worse the end result.

[Dispassion]

The policies of politicians have failed not the "free market". This mess has been caused primarily by Greenspans incredibly stupid monetary policy of setting the price of money too low. This in turn over-inflated the housing market. They have been literally living on borrowed time and should have taken the recessionary medicine years ago. If the markets had been left to price money, as Ron Paul suggests, we would never have had such a debacle.

 

The more they interfer and attempt to reflate the housing market, which is essentially price-fixing, the worse the end result.

 

Regardless of the factors contributing to the failure of the free markets, the free markets have failed.

 

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

 

Are you advocating bankruptcy for all banks, companies and individuals with a negative balance? If not, how do you expect them to survive without intervention?

[romans holiday]

Regardless of the factors contributing to the failure of the free markets, the free markets have failed.

 

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

 

Are you advocating bankruptcy for all banks, companies and individuals with a negative balance? If not, how do you expect them to survive without intervention?

 

What is the alternative? Socialism?

 

Even though I would not consider myself a purist libertarian, I go with Ron Paul on this one.

[MattFC]

ouch!

 

[tl8177]

ouch!

 

silver bouncing along nicely

[ologhai]

ouch!

 

 

Bailout confirmed, then?

[romans holiday]

Oh...what a tangled web they weave.

[kernull]

ouch!

[marmite]

 

Ker, can you see us testing 824 this week

 

Man, if that happens good luck trying to get hold of any physical, the shops are pretty much stripped bare at the moment

[kernull]

Back to gold...

 

Could we have some more rockets and parabolic chat, that time of the month were I buy gold... I always need a little push.

 

Gold above £500 before year end?

 

expecting another rocket after confirming the breakout area, 820

[kernull]

Ker, can you see us testing 824 this week

 

i think it will, i see it as a quick touch, but if it doesn't close around 840 after that, we are in troubles

[Dispassion]

What is the alternative? Socialism?

 

Even though I would not consider myself a purist libertarian, I go with Ron Paul on this one.

 

Solialism is the moral aspect of statism and if the state is to take on massive amounts of failed private debt then it is inveitably a move towards statism.

 

http://www.house.gov/paul/congrec/congrec2008/cr092408h.htm

 

Although Ron Paul is very right to be concerned, I've not seen him present an alternative and any alternative is necessairily interventionist anyway, unless we're talking about liquidating all companies and individuals with debt that they can't immediately repay. Only a sadist or someone who can't accpet that free markets fail, could propose this.

[bitbigt]

Looks to me like silver started to take off exponentialy, raising some automated alarm bells for the PPT.

 

They probably then just squished all PMs by triggerring some compensatory selling.

 

Hence, silver shot up, and then turned 180 degree and went South. Whereas poor old gold was just bumbling along and got dumped on.

 

You can also justify this interpretation by what happens next - gold (which had merely been pushed down) will now be deemed 'too low' by the market and will hold these levels or even creep back up today, whereas silver (which went up and then down, so is where it started) may fall somewhat further. They'll probably both end up about 1% down from where all this nonsense started.

 

...unless the 700B early Christmass gift for bankers is given out today