The GOLD standard

Discussion in 'Economy' started by DavidS, Apr 8, 2009.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    Many predicted when we reached $1000 an ounce last year we would easily be $1500 - $2000 an ounce within 6 months.

    Current gold prices:

    $886/ounce.

    All those people who bought gold at $1000/ounce are kicking themselves right now.
     
  2. editec
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    editec Mr. Forgot-it-All

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    DAMN!

    I KNEW I shouldn't have sold my shares in that buggywhip manufacturing company to invest in gold.
     
  3. Toro
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    Toro Diamond Member

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    Gold may be putting in a double-top.

    [​IMG]
     
  4. manu1959
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    manu1959 Left Coast Isolationist

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    they guy that dumped the market in oct nov of 06 and sunk it in gold is looking pretty good.....
     
  5. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    It is hard to imagine that all of this money printing will not lead to inflation. Whether we break and hold over 1,000 any time soon, I doubt it. Also see the double top.

    Once we are out of the worst part of this economic reset process, we are really going to have to worry about inflation, then rising interest rates, then what that brings. I put the start out about 2 years, but the market will anticipate before that.
     
  6. ItsFairmont
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    ItsFairmont Member

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    This chart just shows how much Greenspan and Bush destroyed the US dollar after Clinton's administration built it up.


    Republicans sure are bad for the U.S. economy.
     
  7. Paulie
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    Paulie Platinum Member

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    No, they're not kicking themselves. They're averaging down if they're smart, because the writing is on the wall. I'd love to see someone explain to me how on god's green earth we won't be seeing AT LEAST double digit inflation in the next year or two.

    The Fed and the rest of the world's central banks would have to literally pull off some kind of miracle. EVERYONE is debasing their currencies these days. Gold will inevitably be seeing a huge increase in demand all over the world at some point, the only question is WHEN.

    I thought you were a little smarter than that about these kinds of subjects Dave.
     
  8. stekim
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    stekim Just Plain Awesome

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    OK. Let the new guy do it! In the short term there is little chance of anything even close to double digit inflation. Inflation is not just a function of the number of dollars in existence. It is a function of economic output, the amount of currency in CIRCULATION, and the speed with which dollars change hands. Hence, when you have an economy with lots of idled capacity the Fed can stimulate growth without encouraging inflation. Right now the economic trends are actually deflationary. Factories are operating way below capacity, unemployment keeps rising, wages are stagnant to dropping and retailers are lowering, not raising, prices. And that isn't going to get materially better any time soon. In addition, while the Fed is adding cash to the economy, the cash is not moving around very quickly. Lenders are holding on to cash and consumers are saving more and paying down debt. They are not spending. Once the economy recovers the Fed can take the currency back out of circulation. But that is a balancing act because doing that is recessionary. The best option is some (but not double digit) inflation.
     
  9. Paulie
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    Paulie Platinum Member

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    You explaining to me what the CURRENT economic conditions are is pointless, I already realize where we are NOW.

    You can't possibly come up with an estimate of how much inflation there will be in the future because you have no idea how the market is going to act, and react, to what's been done up to this point.

    It's only a fair guess to assume that inflation will be high, because inventories are currently high while demand is currently low. When all these new dollars enter the economy, businesses are going to be looking to unload what they're already overstocked with as it is, so the increase in money is going to chase what may very well be a DECREASE in goods.
     
  10. catzmeow
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    catzmeow BANNED

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    Actually, he gets paid to do exactly that.
     

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