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nom=de=plume

"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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