Gold now $1500+ and silver's rise is relentless (up 70% in 3 months).
US AAA credit rating now under threat and the $ getting trashed. It's only political pressure that has prevented a downgrade.
The 'recovery' is no such thing. Pathetic levels of growth are being achieved by massive stimulus designed to stop asset prices collapsing (as they should have done and needed to).
Bernanke won't stop printing until they carry him off to the lunatic asylum.
IMHO the real culprit is globalisation - the temporary 'benefits' have worn off and China is now exporting inflation - it was always gonna happen.
The short-termist economic thinking of the west is coming home to roost.
Protect yourselves!
Gold
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superfrank
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Yep. That reverse currency nonsense is wearing thin with the BRICs.
The UK and Europe are bankrupt too, but at least the Europeans have raised rates slightly and are starting to realise that ever cheaper money is not the solution.
I despair of the US, and our very own Bernanke, King, will resign before the end of the year IMO - he has failed by any measure.
Gold is the ultimate reserve currency and has been for thousands of years.
The UK and Europe are bankrupt too, but at least the Europeans have raised rates slightly and are starting to realise that ever cheaper money is not the solution.
I despair of the US, and our very own Bernanke, King, will resign before the end of the year IMO - he has failed by any measure.
Gold is the ultimate reserve currency and has been for thousands of years.
Hi Frank
I have to agree that the outlook is pretty grim...
A mate of mine's son graduated from Cambridge last year with a 2:1. He's now working in his local M&S. That about sums up the opportunity that's out there.
When you're competing in a world that's becoming ever smaller due to technology, you need an edge. I don't see what Britain's edge is. Too many of our young people are graduating with frankly useless media studies and sociology degrees, rather than taking vocational courses. And there is a culture of entitlement, rather than one of striving for excellence. It's as if, even though the Empire has long ago vanished, some people think that, just because they were born English, the laws of nature are distended in their favour (to paraphrase a novel whose name I forget).
Jeff
I have to agree that the outlook is pretty grim...
A mate of mine's son graduated from Cambridge last year with a 2:1. He's now working in his local M&S. That about sums up the opportunity that's out there.
When you're competing in a world that's becoming ever smaller due to technology, you need an edge. I don't see what Britain's edge is. Too many of our young people are graduating with frankly useless media studies and sociology degrees, rather than taking vocational courses. And there is a culture of entitlement, rather than one of striving for excellence. It's as if, even though the Empire has long ago vanished, some people think that, just because they were born English, the laws of nature are distended in their favour (to paraphrase a novel whose name I forget).
Jeff
superfrank wrote: The short-termist economic thinking of the west is coming home to roost.
Protect yourselves!
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superfrank
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- Joined: Fri Aug 14, 2009 8:28 pm
I admire what Cameron is trying to do but Britain is still f*cked whatever they do/achieve.
The artificial wealth created during the credit boom needs to be destroyed to cleanse the system. But King's plan is to allow those who received this phoney wealth to keep it (by protecting asset prices at all costs), while impoverishing the young and future generations.
The artificial wealth created during the credit boom needs to be destroyed to cleanse the system. But King's plan is to allow those who received this phoney wealth to keep it (by protecting asset prices at all costs), while impoverishing the young and future generations.
He has failed, but given the political independence of his post, it wouldn't look good if the government were to sack him.superfrank wrote: I despair of the US, and our very own Bernanke, King, will resign before the end of the year IMO - he has failed by any measure.
But I hope Osbourne has the balls to say 'Enough is enough! If the Bank of England are unwilling to execute their responsibility to control inflation by raising interest rates, I'll take the power away from them and do it myself!'.
I do worry about gold. Generally, bubbles burst, and when this one bursts it could cause even greater damage than the sub-prime bubble...superfrank wrote:Gold is the ultimate reserve currency and has been for thousands of years.
Jeff
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superfrank
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+1Ferru123 wrote:If the Bank of England are unwilling to execute their responsibility to control inflation by raising interest rates, I'll take the power away from them and do it myself!'.
-1!Ferru123 wrote:Generally, bubbles burst, and when this one bursts it could cause even greater damage than the sub-prime bubble...
Gold isn't in a bubble. It's just been revalued to it's market price after years undervaluation due to people believing that debt=wealth. It doesn't.
Undervaluation relative to what? 
Surely gold has little intrinsic value; like a banknote, it's basically worth what people are willing to exchange for it.
Every day in the horse racing markets, you get horses that go up and up in price. Then often there will come a point where the balance of power shifts from the layer to the backer. The layers who had pushed the price up then panic to get out of their position and start putting in back orders, and the price collapses. Surely the same thing could happen on a much bigger scale with gold.
Jeff
Surely gold has little intrinsic value; like a banknote, it's basically worth what people are willing to exchange for it.
Every day in the horse racing markets, you get horses that go up and up in price. Then often there will come a point where the balance of power shifts from the layer to the backer. The layers who had pushed the price up then panic to get out of their position and start putting in back orders, and the price collapses. Surely the same thing could happen on a much bigger scale with gold.
Jeff
superfrank wrote: Gold isn't in a bubble. It's just been revalued to it's market price after years undervaluation.
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superfrank
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As a store of wealth.Ferru123 wrote:Undervaluation relative to what?
You can't print gold or silver. It has a finite supply.
History tells us that all currency systems ultimately fail. This time will be no different.
You're relying on gold increasing in price at least at the rate of inflation. Even if there's not a crash, it's not a certain that will happen. What if, for example, several economically powerful countries decide to raise their interest rates? People might decide to sell their gold and buy bonds instead, which could bring the price down.superfrank wrote:As a store of wealth.
Sterling has been going for a while, and hasn't failed yet. Ditto the US dollar.superfrank wrote:History tells us that all currency systems ultimately fail. This time will be no different.
Jeff
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superfrank
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I don't pretend that the price of gold cannot fall, but even if countries raise rates their debt burdens become even greater (and they are huge).
Britain is currently borrowing £400m a day.
The £ and $ have had several different incarnations. They came off the gold standard not so long ago...
Britain is currently borrowing £400m a day.
The £ and $ have had several different incarnations. They came off the gold standard not so long ago...
To clarify, are you talking about taking on extra debt through issuing bonds?superfrank wrote: Britain is currently borrowing £400m a day.
I didn't know we were doing that - it doesn't really make sense at a time when we're trying to cut the national debt...
Jeff
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superfrank
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Yep.
The average person doesn't know the difference between debt and deficit, and politicians deliberately confuse the 2 (especially the odious Ed Balls who recently compared the budget deficit to a mortgage!).
Even when the budget is in balance (end of parliament on current optimistic forecasts) the national debt will still be growing due to debt interest (currently over £40bn a year).
http://www.debtbombshell.com/
The average person doesn't know the difference between debt and deficit, and politicians deliberately confuse the 2 (especially the odious Ed Balls who recently compared the budget deficit to a mortgage!).
Even when the budget is in balance (end of parliament on current optimistic forecasts) the national debt will still be growing due to debt interest (currently over £40bn a year).
http://www.debtbombshell.com/
Thanks Frank - That's an interesting site.
BTW, I think that the growth forecast is a fantasy! Economic theory says that you can only grow an economy through exports, innovation or investment. I just can't see Britain benefiting in a big way from any of those things anytime soon, particularly as the government is keen on penalizing two of its biggest exporting industries - oil and banking.
Jeff
BTW, I think that the growth forecast is a fantasy! Economic theory says that you can only grow an economy through exports, innovation or investment. I just can't see Britain benefiting in a big way from any of those things anytime soon, particularly as the government is keen on penalizing two of its biggest exporting industries - oil and banking.
Jeff
superfrank wrote: Even when the budget is in balance (end of parliament on current optimistic forecasts) the national debt will still be growing due to debt interest (currently over £40bn a year).
http://www.debtbombshell.com/