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#2
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7 things about the economy
On 24/01/2010 11:18 PM, nom=de=plume wrote:
wrote in message ... On 24/01/2010 6:35 PM, nom=de=plume wrote: wrote in message ... On 24/01/2010 3:57 PM, wrote: On Sun, 24 Jan 2010 15:02:26 -0500, wrote: Chinese are tightening their credit. I thinks Obama's problems just got worse. Especially if China wants some of that maturing US debt paid off. What happens if the USA just says, "No"? Just curious. Short answer ... The dollar would be devalued and oil would cost more, among other things. Good answer, hyper inflation due to currency devaluation. And I really think that is the liberal game plan. Has been for over 2 years as nothing else explains the mad-hatter direction of government other than pure insanity, which may be true all the same. Here goes my view on how government is thinking on this depression. Government does not sees the problem as people not having money, they see homes in a recession pricing. It makes it attractive for a family to toss the keys to the banks and walk. Growth is needed to hide losses and screw ups. Part of the plan is getting people to put all the money in seemingly safe places, T-bills, money market, cash places. At ultra low interest rates. Now lets say let the dollar fall by say 75% in a rapid period of time, too fast to move out of cash and sell t-bills etc. Just stop honoring debt, just like Iceland just did. Who knows, they could be the pilot group. So if one woke up and oil went from $80 barrel to $320 a barrel, the government just devlaued it's $12 trillion dollar debt by 75%, as people get wage increases in the inflation cycle, and money is stuck in low interest, the currency debt and fiscal debt becomes depreciated on the backs of people with money. It is why I am in pure cash (can buy gold/stock/real-esate etc) on a click. But will not touch a morgage mutual, t-bill or cd/gic with a 10 foot poll. I view lending right now as toxic. Even if it is lending to government. The only way I would lend to government is with an infation clause and 5% premium without taxation. Otherwie a brick of gold looks pretty good. Lets take a scenario, person A buys $1000 of oil, say 12.5 barrels of it. Person B buys a T-bill at a meaningless interest rate. Then the dollar plumets as debt isn't honored against the currency itself. Person A still has 12.5 barels of oil worth $4000. Person B has $1000.10 that now can only purchase 1/4 of what it did not too long ago. Value currency depreciation. More people will get jobs if it goes far enough as then US goods become cheap like Chinese ones. Hyper inflation as coffee goes from $10 a tine to $40, but government doesn't give a damn about retired and people, they are just to milk for statism. Wages will not keep up. How this addresses housing is simple. If a home is $200K to build today, but is selling for $180K, and has a $200K morgage, after inflation it changes to perhaps $500K to build and $400k to buy. No idiot will oss the keys for that sweet deal. To understand government policy, it becomes easy once you realize they are the biggest meanist delinquent dysfunctional debtors going. A debt monger mindset and plent of self denial. Time will tell, but in 2010 some time we should see a big move down in USD value. Big move actually. Probably in the later hald as the mini recovery bubble pops. If you think hyperinflation is coming, claiming that you've got all cash isn't exactly where you want to be. You should be complete in a precious metals, since you may not be able to "click" and get it done, as the SEC would shut down the exchange. Also, you'll need to have the gold or whatever in your possession to be safe. Oh, and you're not too bright... if that wasn't obvious. To you, not obvious. My generalization about cash is I am not going to CD/GIC or loan it as a cash instrument, not even a money market and certainly not bonds or some silly morgage mutual. I don't "invest in cash" isn't the same as wanting some short term liquidity for opportunities and portfolio rebalancing. I have my reasons including if Obama drives the Dow to 8000 or lower it might be a minor repeat of last year....and like last year have opportunistic cash for the average in on the dip, its Obama's move. LOL. Or perhaps buy some gold. Just that China credit tightening and Japan banking with Obama chest pounding sounds like trouble. I don't think the US SEC can shut down a Canadian exchange. Have another drink. I definitely think you should put all your money in gold. Also, buy some land in a remote place and live there. The thought has occured to me. Would certainly guarantee my fiscal futures. |
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#3
posted to rec.boats
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7 things about the economy
"Canuck57" wrote in message
... On 24/01/2010 11:18 PM, nom=de=plume wrote: wrote in message ... On 24/01/2010 6:35 PM, nom=de=plume wrote: wrote in message ... On 24/01/2010 3:57 PM, wrote: On Sun, 24 Jan 2010 15:02:26 -0500, wrote: Chinese are tightening their credit. I thinks Obama's problems just got worse. Especially if China wants some of that maturing US debt paid off. What happens if the USA just says, "No"? Just curious. Short answer ... The dollar would be devalued and oil would cost more, among other things. Good answer, hyper inflation due to currency devaluation. And I really think that is the liberal game plan. Has been for over 2 years as nothing else explains the mad-hatter direction of government other than pure insanity, which may be true all the same. Here goes my view on how government is thinking on this depression. Government does not sees the problem as people not having money, they see homes in a recession pricing. It makes it attractive for a family to toss the keys to the banks and walk. Growth is needed to hide losses and screw ups. Part of the plan is getting people to put all the money in seemingly safe places, T-bills, money market, cash places. At ultra low interest rates. Now lets say let the dollar fall by say 75% in a rapid period of time, too fast to move out of cash and sell t-bills etc. Just stop honoring debt, just like Iceland just did. Who knows, they could be the pilot group. So if one woke up and oil went from $80 barrel to $320 a barrel, the government just devlaued it's $12 trillion dollar debt by 75%, as people get wage increases in the inflation cycle, and money is stuck in low interest, the currency debt and fiscal debt becomes depreciated on the backs of people with money. It is why I am in pure cash (can buy gold/stock/real-esate etc) on a click. But will not touch a morgage mutual, t-bill or cd/gic with a 10 foot poll. I view lending right now as toxic. Even if it is lending to government. The only way I would lend to government is with an infation clause and 5% premium without taxation. Otherwie a brick of gold looks pretty good. Lets take a scenario, person A buys $1000 of oil, say 12.5 barrels of it. Person B buys a T-bill at a meaningless interest rate. Then the dollar plumets as debt isn't honored against the currency itself. Person A still has 12.5 barels of oil worth $4000. Person B has $1000.10 that now can only purchase 1/4 of what it did not too long ago. Value currency depreciation. More people will get jobs if it goes far enough as then US goods become cheap like Chinese ones. Hyper inflation as coffee goes from $10 a tine to $40, but government doesn't give a damn about retired and people, they are just to milk for statism. Wages will not keep up. How this addresses housing is simple. If a home is $200K to build today, but is selling for $180K, and has a $200K morgage, after inflation it changes to perhaps $500K to build and $400k to buy. No idiot will oss the keys for that sweet deal. To understand government policy, it becomes easy once you realize they are the biggest meanist delinquent dysfunctional debtors going. A debt monger mindset and plent of self denial. Time will tell, but in 2010 some time we should see a big move down in USD value. Big move actually. Probably in the later hald as the mini recovery bubble pops. If you think hyperinflation is coming, claiming that you've got all cash isn't exactly where you want to be. You should be complete in a precious metals, since you may not be able to "click" and get it done, as the SEC would shut down the exchange. Also, you'll need to have the gold or whatever in your possession to be safe. Oh, and you're not too bright... if that wasn't obvious. To you, not obvious. My generalization about cash is I am not going to CD/GIC or loan it as a cash instrument, not even a money market and certainly not bonds or some silly morgage mutual. I don't "invest in cash" isn't the same as wanting some short term liquidity for opportunities and portfolio rebalancing. I have my reasons including if Obama drives the Dow to 8000 or lower it might be a minor repeat of last year....and like last year have opportunistic cash for the average in on the dip, its Obama's move. LOL. Or perhaps buy some gold. Just that China credit tightening and Japan banking with Obama chest pounding sounds like trouble. I don't think the US SEC can shut down a Canadian exchange. Have another drink. I definitely think you should put all your money in gold. Also, buy some land in a remote place and live there. The thought has occured to me. Would certainly guarantee my fiscal futures. Good idea, then you can head down to the local farmer's market and barter for your corn. -- Nom=de=Plume |
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