budlover13
King Tut
I have heard that silver is outperforming gold and has been for a few years. Idk much about it though.
Hyperinflation Inevitable for USA
- Thread starter budsmoker87
- Start date
since 2008 silver has gone from $8.50 an ounce to $44 today. Gold has gone from $850 to $1500. Silver increased 517% and gold increased 76% or in other words silver is going up at a rate 7.7 times faster than gold.
Silver is Highly Manipulated, that is coming to an end, normally silver has traded at a ratio of 15 to 1 to gold. For it to get to that ratio gold needs to stop going up until silver reaches $100. But gold will continue to go up and silver will continue to go even higher and will probably overshoot $100 before falling back to its historical ratio
budlover13
King Tut
Thank you for that quick synopsis ND.
mame
Well-Known Member
I cant watch the movies atm cuz I'm at work, but the article was interesting I completely missed the boat on that whistleblower story.
The article says that gold should(without tampering) be $2300+ already... sounds like there is plenty of upward pressure for investors to make some money off of. Now, I'm not an investor at all - but I plan on it eventually (gotta build a portfolio to be an old man on yo!). So my thought process here is that with as much upwards pressure there is on gold, it seems like it would be a good investment leading up to the inevitable disinflationary measures the Fed is sure to take? It seems gold will only go up until Bernanke raises rates significantly (which would likely happen once the U.S. reached NAIRU)... right? One could make some serious cash in the next couple years with some good timing if I'm even close to right... But at the same time, inflation would really determine how much extra real purchasing power you'd have. Gold seems to go up at the same rate as inflation so I wonder what kind of model would allow one to try and predict potential profit based on real purchasing power (so inflation is taken into account, as we're likely to face moderate inflation it seems).
The article says that gold should(without tampering) be $2300+ already... sounds like there is plenty of upward pressure for investors to make some money off of. Now, I'm not an investor at all - but I plan on it eventually (gotta build a portfolio to be an old man on yo!). So my thought process here is that with as much upwards pressure there is on gold, it seems like it would be a good investment leading up to the inevitable disinflationary measures the Fed is sure to take? It seems gold will only go up until Bernanke raises rates significantly (which would likely happen once the U.S. reached NAIRU)... right? One could make some serious cash in the next couple years with some good timing if I'm even close to right... But at the same time, inflation would really determine how much extra real purchasing power you'd have. Gold seems to go up at the same rate as inflation so I wonder what kind of model would allow one to try and predict potential profit based on real purchasing power (so inflation is taken into account, as we're likely to face moderate inflation it seems).
Mellowman2112
Well-Known Member
mame
Well-Known Member
Under 40%. They're at ~93% atm and they've been as high as ~123%... Are you implying that this matters? because it doesn't.
You aren't counting the unfunded liabilities like Medicare/medicaid and SS. Count those and we are at about a cool $100 Trillion. That is about 600% debt level. Greece would be proud!
If it costs $10 trillion to fight a third rate country like Afghanistan, imagine how much money it would take to fight a second or first class country?
People have to save capital first in order to invest it second. If you have no money and no credit you cannot invest.
Mellowman2112
Well-Known Member
So your saying the potential for inflation isnt worse if our debt levels to gdp are more than twice as much as when we had our last inflation bout? We have much less room to borrow before bond buyers stay clear. We are adding 10.5% per year to the debt, the same as greece. This means austerity measures coming soon. So why doesnt this matter Brainiac?
mame
Well-Known Member
Although the numbers look the same now, our situation isn't really comparable to Greece over the medium term(see especially the graph of projected deficits as a percentage of GDP). If it's the Bond vigilantes you're worried about, market confidence in Greece has actually declined since they began Austerity measures(on the graph, look right around may of 2010)... So that wouldn't help. Besides that, Greece uses the Euro so they dont get the option of printing money.
How are we comparable to Greece again?
Mellowman2112
Well-Known Member
So going more in the hole is a good thing according to you? Having the Fed buy more treasuries is a good thing? If we really were printing our own money it wouldnt be such a terrible thing. But we dont. The fed buys treasuries, this is how money is added to the economy. We buy the dollars from the private fed in exchange for treasuries. Dont you see the fuckjob we get from the Fed yet?
Charlie Ventura
Active Member
May I recommend a book for you to read?
http://www.amazon.com/Creature-Jekyll-Island-Edward-Griffin/dp/091298645X/ref=sr_1_1?s=books&ie=UTF8&qid=1303600466&sr=1-1
Charlie Ventura
Active Member
Exactly. And their "agenda" is nothing other than to protect their member banks. The FED is nothing more than a cartel of member banks, not unlike the oil cartel OPEC
budsmoker87
New Member
the fed is not interested in "making money" (in the literal sense yes, printing, or makings lot of money)
the FED's interest is in the value it possesses via assets. it owns a handful of banks...yes, the same ones that benefited via bailouts...the CEO's just fill in the government positions such as treasury secretary/economic advisor/chairman of this or that...and those "investment banks" gamble with each other by re-packaging debt as an "investment." this is what those "derivatives" are and they're caused by auction-rate securities, collerateralized debt obligations, MORTGAGE BACKED SECURITIES <---look up the defintion of that one on investopedia.com lol
it's a sham...the interest on everything compounds and compounds, until the FED/government gang are like "whatever, we're living high" and the seperation between socio-economic classes spreads as they relish in the power of controlling a printing press that causes many other countries' currencies to fluctuate....(but really just go down). EVERY FIAT CURRENCY COLLAPSES...relax, life goes on. where there's a will there's a way. i went through some lire and deutschemarks today that are no longer accepted...as well as rupees.
the FED's interest is in the value it possesses via assets. it owns a handful of banks...yes, the same ones that benefited via bailouts...the CEO's just fill in the government positions such as treasury secretary/economic advisor/chairman of this or that...and those "investment banks" gamble with each other by re-packaging debt as an "investment." this is what those "derivatives" are and they're caused by auction-rate securities, collerateralized debt obligations, MORTGAGE BACKED SECURITIES <---look up the defintion of that one on investopedia.com lol
it's a sham...the interest on everything compounds and compounds, until the FED/government gang are like "whatever, we're living high" and the seperation between socio-economic classes spreads as they relish in the power of controlling a printing press that causes many other countries' currencies to fluctuate....(but really just go down). EVERY FIAT CURRENCY COLLAPSES...relax, life goes on. where there's a will there's a way. i went through some lire and deutschemarks today that are no longer accepted...as well as rupees.
budsmoker87
New Member
yea, go take advice from goldman sachs...lol like rly??
Prefontaine
Well-Known Member
Im sorry but for us to experience disinflation our inflation rate would have to be a negative number, 1% is still inflation, and we have seen ridiculous inflation since our little depression, you see when food costs more, gas costs more, and housing costs more, and most people are still working for less then they used to, that means we have less buying power.
Whats the price of gold? $1,704. Isn't that an all time new high? Yes it is. Thats not indicative of deflation.
mame
Well-Known Member
They're only one of the most accurate teams of economists assembled on the planet...
You dont understand what disinflation is; DEFLATION is when inflation is a negative number, DISINFLATION is when we're still in positive inflation territory but less rapidly. For example, if last month we had 3% core inflation and this month we have 2% core inflation than we have experienced 1% disinflation.
This is why gold is a terrible inflation indicator(it acts more like an asset on the market than a currency... but I'm not here to make an argument about gold again).. It doesn't mean it's a bad hedge against inflation, obviously - but we are in fact experiencing disinflation... GS says 1% core by the end of the year, that could easily translate into Deflation next springtime if the Fed does not intervene(we we both know they will).