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Skybird

06-28-20 05:37 AM

https://www.zerohedge.com/political/...-loses-control

Quote:

In fact, in a debt-saturated system, the Fed’s massive bond purchases never transmit anything outside the canyons of Wall Street. This money-printing madness only drives bond prices higher and cap rates lower—meaning relentless and systematic inflation of financial assets’ prices.
As a practical matter, of course, the bottom 90% don’t own enough stock or even inflated government and corporate bonds to shake a stick at. Instead, what meager savings they have accumulated languish in bank deposits, CDs or money market funds earning exactly what the Fed has decreed—nothing!
So, when Powell says he’s only trying to help the average American, you have to wonder whether he is just stupid or the greatest lying fraud yet to occupy the big chair at the Fed.

Similiar developement in the Eurozone - just even slightly worse, maybe.

Skybird

06-30-20 02:24 PM

The German industry has declared itself officially "overloaded" with bureaucratic hurdles and overregulations, saying that it already was almost no longer to should the many regulatory needs and paperwar in normal times, but now in Corona times its all a millstone around their neck. At the same time when - imo reality-disconnected - politicians babble of using the crisis to invest and change for the wanted "Green deal", over 55% of those German companies and corporations who get financial Corona aid and got promises for more in order to help them making the metamorphosis into the better, the brighter, the greener future- as a matter of fact have substantially reduced their financial investing activity. They just struggle and fight for their survival. Last thing they need after Corona and overregulation and paperwar, is even more burdens loaded onto them.

The German industrial powerhouse is struggling dangerously, and is expected to finance the exploding financial redistribution schemes of the EU . And some have nothing better to do then to load even more burdens onto its shoulders, to make sure that is MUST break down.

A timing could not be any more off the mark. But what else to expect iof a generla understanding of market economy has gone almost extinct and has been replaced with state-planned fantasies.

Skybird

08-04-20 04:18 PM

Quote:

Originally Posted by https://www.welt.de/wirtschaft/article212912200/Goldpreis-Die-2000-Dollar-Marke-belegt-fehlendes-Vertrauen.html

The gold record is also a vote of no confidence against politics

The precious metal will cost more than $ 2,000 for the first time. This is also due to the corona crisis. But the real reasons lie deeper - the massive price surge also directs the focus on central bank policies and their handling of the euro, dollar and Co.

Gold has made history twice in just a few weeks. It was only in July that its price in the key currency, US dollars, broke the previous record high of September 2011, which had been at $ 1921. And on Tuesday, it was trading above $ 2,000 for the first time.

This clearly demonstrates the dynamics currently prevailing on the market for precious metals. The reason for the massive price increase is always the uncertainty that results from the consequences of the Corona crisis for the global economy. That is not wrong, but the causes are deeper.

In order to recognize this, it is worth looking back. The record of September 2011, which was valid for many years, resulted from the currency turmoil from a currency crisis. It was not until Mario Draghi's promise by the European Central Bank to do whatever it takes to save the common currency that the markets calmed down. As a result, the gold price fell again, also because there was an investment alternative with the bond market that - unlike interest-free gold - could be used to generate returns.

That has changed. The collateral damage that the major central banks - worldwide, and not just in the euro zone - accept with their limitless flood of liquidity and their zero interest rate policy is a global market for government bonds, in which there are now over 14 trillion bonds Bring in dollar negative returns.

It has been observed for years that this development has a clear correlation to the gold price - large investors are apparently switching from bonds that cost them money to the precious metal, which does not generate interest, but at least does not cost investors any penalty interest.

The billion-dollar rescue packages that governments and central banks are now putting together in the fight against the corona pandemic - as correct and appropriate as they may be - will continue to fuel this trend.

It has now taken its toll on politicians for almost a decade to waste the time that the central banks bought it to stabilize the foundations of public finances with decisive reforms after the devastating financial and euro crisis. And still no one knows how far the aid packages can carry. A second wave could require a similar action to save the economy.

The debt burden of the western industrialized nations was immense even before the corona pandemic - and only because the central banks kept interest rates low and thus redistributed wealth from citizens to the state.

Now, however, the quotas continue to rise, the states are reaching the limits of debt sustainability. And this is also expressed by the gold price: confidence in the currencies has deteriorated. In retrospect, it does not seem to be a coincidence that the low point of the gold price fell in the founding phase of the euro. The common currency has since lost a good 80 percent of its value in gold.

Many investors and those in whose sight the metal is now falling due to the record hunt may now be wondering whether the price will continue to rise. It depends on many factors. One of the most important is the question of whether politicians and central banks recognize a stable currency as a value in itself - and act accordingly.

The states will crave to implement ways to plunder private gold reserves sooner or later, I fear. They always do like this sooner or later. Some already moved into that direction, India for example. Restrictions in Europe over the past years have nbeen tightened as well, also in Germany.

Gold means private independence from state fraudulent money and state expropriation schemes hidden in harmlessly sounding word dresses. Politics wants dependency of the people, not independence. Nobody should be able to escape the states' and central banks' yoke.

2500 Dollar per ounce of gold within the next 12-15 months imo are absolutely possible.

Catfish

08-05-20 02:15 AM

Gold is only valuable as long as all agree that it is, just like any currency.
It's "worth" will continue to rise and fall, and in case of a real crisis you will not be able to buy food with it. Or maybe you are, like a kilogram for a loaf of bread.

Skybird

08-05-20 03:06 AM

Quote:

Originally Posted by Catfish (Post 2687224)

Now compare to a Rucksack of Euro or Dollar notes, and compare to the history of the past centuries or millenia. ;)

Paper moneys come and go, and over their lifespan, their value developement knows only one direction: downward. Compared to gold, the Euro has lost already 80% of its starting value, the dollar since the time immediately before WWI even over 95%. Gold stays since millenia. Only 2-3% of gold traded per year, is newly mined gold, the rest is old gold that just changes the owner. - How much newly created book money floods the market every year? :D

Estimations on how much gold has ever been mined in total in human history, range from 190 thousand to 245 thousand tons. In total. In all of mankind's history. Its a limited comodity for us on planet Earth. That limited availability is part of its success story that lasts since millenia.

And if it would be so worthless as you imply, please explain why central banks have moved in recent years to buy it in huge quantities, while handing out their fraudulent paper stuff inflationary and in careless ammounts and biblical quantities. Because paper money has worth and gold has not? Are they stupid, then? That they sold parts of it this year is due to the need for cash in corona times.

Voltaire said that every paper money sooner or later reaches its natural intrinsic value: nill. Gold however over the course of history has acchieved a net gain. Over centuries and millenia. ;) It simply is "wertbeständiger" in people'S appreciation and preference. Kill an industry, destroy a company, and your stocks are worth nothing anymore. Destroy a state, brign down a bank system, and bank notes and bonds are worth nothing anymore. But certain other things still get traded, and keep their value. Thats why they are wanted,m always have been wanted, and for the forseeable future always will be wanted. Granted, if we find a 1 billion tons of gold reserve on the moon, that would do the trading value on planet Earth no good - but we have not found a billion tons of gold on the moon so far.

Skybird

08-15-20 07:42 AM

The moment of truth for the monetary system.

http://translate.google.com/translat...ny7Q0ozVRssBHc

Quote:

In 1848, as is well known, Marx (and Friedrich Engels) called for the "centralization of credit in the hands of the state by a national bank with state capital and exclusive monopoly". A downright creepy scenario: The all-powerful central bank or the special interest groups that collect it would now have control over who receives credit and money, when and under what conditions - which state, which industry, which workers and employees. The path to a de facto dictatorial command and control economy - as many proponents of climate rescue policy and "green monetary policy" long for - would thus be practically through the back door.

No question about it, the world has a "money problem": sooner or later, fiat money will destroy the free market economy and thus also the free society; the coronavirus crisis only reinforces the existing momentum. Because the rulers and the ruled are now attached to fiat money like flies on the flycatcher, the central banks have even more room for maneuver. They can monetize the national debt and thereby also drive up price inflation without having to fear insurmountable opposition: In order to avoid the great evil of the “megacrash”, inflation costs are accepted as the comparatively lesser evil.

You can already guess what will come in the time "after Corona": The already great dependency of economies on fiat money will affect the central banks and the groups that know how to use them for their purposes - states, but of course also the banks and banks Financial industry as well as large corporations - make it even bigger. The drive to save the bare currencies from collapse will bring the cartel of central banks closer together. That everything will boil down to a uniform world monetary policy with world money has certainly not become less likely; It does not need to be emphasized separately which totalitarian potential dangers would be associated with it.

mapuc

08-16-20 12:24 PM

(I use this thread, because it's about economy)

Do you have what it takes ?

Do you master State economy and what follows in this area of economy ?

Do you accept lots of journalist running after you, for a comment ?

Do you think you could pass the highest clearing.

If you have said yes to all these question then there's a great job waiting for you.

The Danish Government are looking for a new Governor to the National bank

Markus

Skybird

08-18-20 09:34 AM

Bank run in Turkey. People are rushing into gold on Istanbul Bazaar. Is it the end game for the Turkish Lira? Not yet. We have Covid returning, and we remember the run for toilet paper. The virus could provide the Lira a second life.

https://uk.reuters.com/article/us-tu...-idUKKCN25A0GW

https://www.zerohedge.com/markets/tu...old-while-lira

Too late. You should have gotten your fix of gold BEFORE these things start to turn ugly.

Watch closely, rest-of-the-world. Where Turkey is now, whewre Arenbtia has been repeatedly, we others will be in the future. Say ten years, say twenty years: the timetable is open for discussion. The outcome not.

Skybird

08-27-20 10:53 AM

https://www.scmp.com/comment/opinion...-borrowed-time

Quote:

Germany has given up the ghost on trying to control the ECB’s monetary excesses. There seems to be a palpable sense of “if you can’t beat them, join them” for the sake of presenting a united front and avoiding a damaging public row. In the pre-euro days, tough Bundesbank policies and the strong Deutschmark were solid anchors of the European monetary system, implacable yardsticks which helped other European countries govern their own performances.

These days, Frankfurt’s fiduciary responsibility seems to have been quietly abandoned in favour of political expediency, economic survival and a softening in standards. The ECB has abandoned Germany’s monetary rigour, spending its way out of recession through debt monetisation and underwriting Europe’s explosive fiscal expansion in the process. The forefathers of the Deutsche Bundesbank would turn in their graves.
(...)
Like in the US subprime crisis, it’s fine while the charade lasts, but once confidence begins to wobble, that is where the danger lies. It’s a bit like the tale of the emperor’s new clothes – once someone calls attention to the reality, the pyramid of risk starts to implode.

What I have started to fear some years ago already is that when the moment of truth has come, what states' politicians will do to not drown. It is known to rescue swimmers that people drowning can even easily panic and then kick and poull other sudner water in desperation for keeping their head above the waterline, rescue swimmer I think are beign told to knock them out them (at least Kevoin Costner said that in his The Guardian movie). I fear that states will turn openly authoritarian and totalitarian to enforce their fiscal regimes and the expropriation of private property.

Skybird

08-27-20 02:22 PM

Like the ECB, so the FED:

"OPEN THE FLOODGATES!"

https://www.nbcnews.com/business/economy/fed-will-let-inflation-rise-target-jobs-n1238278

Now my most feared consequences from the pandemic starting to show: their effect on the systemic change of the "money" system.

If one is not ashmamed to stil, call it a "money". Its pure worthless claim for debts made before.

And we will never recover from the monetarian massacres we currently witness. Never. Its impossible, the debts have been allowed to grow too far. Factors too far.

"(Ungedeckter) Kredit ist vorgezogener Konsum, der in der Zukunft ausfällt." - Ludwig von Mises
That has the logic of a Vulcan, and the simplicity and elegance of a poet.

Skybird

08-29-20 11:44 AM

The big bet.

http://translate.google.com/translat..._12369393.html

Skybird

09-12-20 04:44 AM

Andreas Untzerberger from Austria writes in his blog and the Auistrian "Börsenkurier"

Quote:

Even if we seem to have gotten used to it, the unrestrained printing of money by many central banks remains the greatest threat to our economic future. It has been running on a large scale every year since 2008 and has accelerated again rapidly since the outbreak of the Corona crisis.

Since 2008, the total assets of all central banks in the euro area, Great Britain and the USA have increased sixfold on average! And since March alone, growth has accelerated again, for example at the ECB from 4.6 to 6.3 trillion. That is threatening - even if many are currently hoarding money out of fear and therefore the negative consequences will not occur as long as they do so. But the amount of goods and services in any case has not increased at nearly the same rate. Or even shrinking since March. Ultimately, this must lead to enormous inflation - as in the interwar period after a couple of "Roaring Twenties", when a similar attempt was made to make the costs of war disappear by printing money and creating money in the books.

What is particularly frightening is that almost none of the money created goes into real investments that could later turn out to be profitable. The main ports of destination for the flow of money are:

-Bonds from deficit states (which channel an ever larger part of the budget into the unproductive welfare system);
-Real estate (whose prices are skyrocketing);
-Gold (detto);
-Electric cars and wind turbines (which are supposed to be beneficial to the climate, but certainly do not lead to additional added value);
-Stock exchanges (where it is uncertain how much of this will go into real productivity gains),
-the barely disguised nationalization of companies (such as in aviation, although it will not recover for a long time);
-and subsidies to non-sustainable company structures (which are able to mobilize strong lobbies, supervisory boards and trade unions).

A clever economist recently compared that to politically correct language manipulation, which, however, cannot cause the genders to become one and the same. Nevertheless, it seems extremely unlikely that any politician in Europe or the USA will soon admit that there can be no central bank trick that could prevent the loss of prosperity caused by the crises from necessarily reaching the people.

Many have long suspected this fact and are therefore desperately looking for ways to cushion these losses for their own families.

https://www.andreas-unterberger.at/2...-gelddruckens/

Skybird

09-12-20 03:55 PM

Insidious Tax: Preparing the Ground for Higher Inflation

http://translate.google.com/translat..._12420508.html

Quote:

Radical forces are pushing for their goals to be achieved quickly through tough intervention. They have already arrived in monetary policy (theory). For example, in the form of “modern monetary theory” or “MMT” for short). According to her, the state should print the money it needs itself instead of collecting taxes or borrowing from banks. At its core, the MMT boils down to withdrawing the state loan from any market valuation. In practice, the central bank would become a subdivision of the Ministry of Finance - a situation that was common in many places up until the 1970s, and which repeatedly resulted in high, sometimes very high inflation

A foreseeable sacrifice is probably the free society, the free market economy (or what is left of it). If civil and entrepreneurial freedoms are increasingly restricted in favor of the state, the political zealots, the radicals, receive a tailwind. And with that, the danger increases that the destructive effects of inflation will be used for political purposes - to overthrow civil society.

Skybird

12-18-20 08:57 AM

https://translate.google.com/transla...kensystem_bebt

Quote:

But what is the way out then? As I see it, the absolute debt of almost 300,000 billion, which means a relative debt of almost 400 percent of global GDP, sooner or later inevitably leads to a collapse of the financial system, because such a mountain of debt cannot realistically be removed. What does that actually mean?
First, it is said that in the last decades in which this mountain of debt has arisen, we have created huge sums of money that are not sufficiently offset by real values. Second, it means that there has been no economically profitable use for a good part of these funds, but that the debtors have wasted the money and will be unable to serve the creditors. Therefore, the mountain of debt will have to be removed by a huge wave of bankruptcies.

It has always been so , as the excellent analysis of credit history over the past 800 years by economists Carmen M. Reinhart and Kenneth Rogoff shows. Nobody knows when that will happen, because prognoses never work in complex systems, you could just as easily try to predict when you will fall in love again. But if the scenario described above occurs, bankruptcies of up to 30 percent of all companies with corresponding mass unemployment can be expected; on the way there, the banking system collapses under the pressure of write-offs and becomes insolvent and illiquid itself, and payment transactions then fail.

Whether this scenario occurs suddenly or gradually, as the G30 paper implicitly suggests, which suggests making the bankers the " inner party " of the new financial socialism, does not matter. Because sooner or later the states will be forced to nationalize the banking system and introduce sovereign money as in the GDR. The state determines the amount of money and distributes loans to the companies. Many see it as inevitable that this will happen because of the huge financial difficulties. One of the main demands of Karl Marx in the “Communist Manifesto” would then be fulfilled.

Skybird

01-29-21 08:29 AM

Gamestop - don't stop the game!

https://translate.google.com/transla...as-Empire.html

To protect the established sharks, the system meanwhile has started to play foul against private investors:

https://translate.google.com/transla...r-Anleger.html

Skybird

01-30-21 05:13 AM

The FED fiddles while the Dollar burns.

https://www.zerohedge.com/markets/do...t-last-forever

Skybird

02-15-21 07:38 AM

Paper value owners must watch out because they have build their dream castle on quick sand. Gold holders must watch out due to the danger of state criminals installing another prohibition. Stock holders must watch out because of companies imploding are not value and the stock ownership cannot be hidden from the state: penalties on stocks can be installed like on any other known property, in many forms, mostly "taxes" and trading fees. After the second world war, Germany for example had land and house owners with debt-free property being plundered with state-installed mortgages of up to 50%, and stocks being obviously devalued for as obvious reasons.

No matter what our strategies are and were, stocks or ETFs or cash or bonds or diversification or bitcoins or gold or land/house property: WE ALL ARE IN HIGH DANGER. The whole system is to suffer a core meltdown.

https://www.zerohedge.com/markets/crazy-days-money

Quote:

One reason bitcoin holders see bitcoin becoming the new money is the gold prices’ muted response to increasing monetary debasement, compared with that of bitcoin. It is also argued that when investors would previously hedge fiat debasement by buying gold, they are now buying bitcoin.
There may be some truth in the deflection of buying from gold into bitcoin. But the argument fails when it is realised that the vast majority of buyers of bitcoin anticipate selling for a profit in the buyers’ base currency. - [Ha! I am telling this since years!] - The similarity is not with physical gold, but with investing in mines, ETFs and paper gold.
The real reason for gold’s underperformance is the establishment’s long-established antipathy towards it, something that should serve as a warning to hodlers of bitcoin. To regard gold as sound money is to turn one’s back to Keynesian macroeconomics, something the US Government, with its interest of promoting and retaining dollar hegemony has actively discouraged. In order to absorb demand for physical gold it has fostered the growth of paper markets, which can be expanded by the bullion banks at will. This policy goes beyond precious metals and includes base metals and other industrial raw materials as well, allowing the dollar to retain a more stable value measured against them than would otherwise be the case.

Rockstar

02-15-21 06:05 PM

This is over a month old but it may not be over just yet, Joe Foster Portfolio Manager, VanEck International Investors Gold Fund thinks there maybe risk of hyper inflation and gold could go as high as $3,400 an ounce this year.

https://www.kitco.com/news/video/show/Outlook-2021/3160/2021-01-08/Hyperinflation-is-real-risk-gold-price-to-climb-as-high-as-$3400

Skybird

02-15-21 06:36 PM

Gold prices soaring has been predicted since years, and while it went up a bit, it failed to do so at the ammounts predicted. States and central banks will not allow it to happen, since it would be a most obvious non-confidence vote for the paper currencies Dollar and Euro and all the other illusory payment tokens.

I take it for granted that the prices for gold get very heavily manipulated to keep them in check. That last but not least also means manipulation of demand bny strategically buying and selling huge deposits of gold, and paper market destraction operations, to call them this way. At leats in the West. Russia for exmaplek seems to play it much more serious , so do a number of Asien states. They try to disconnect from the dollar and indeed hold their gold, most of it, even increase it.

Before they let it go that high in price, they will prohibit private ownerhsip. Solidarity, social justice and the common good and all those phrases, you know. Hyperinflation as the ounsihement for sutpid finance politics must be taken by all, even by those trying to save themsleves by beign more intelligent and rosnsibkle: by trying to get prepared. It cannot be that these do not show their solidarity with the stupids and escape the havoc: by havign been prepared by their own means ans repsnsiblity. Self-responsibility? Where would it lead if we allow self-responsibility...??

If the price would not be manipulated, I am quite certain it would stand already somewhere between 7000 and 14000 Dollars - if not even significantly more.

Instead, they allowed many other paper stuff bubbles to form up again, and the property market is hopelessly overheated. They are the price for keeping "trust" in paper currency. In the US, people live to much wider degrees on credit, than over here, and if you tlak of saving, you almopst get aliughed at. But Corona maybe will end that. Many private households are drownign in different debts of theirs for different credit card companies. those holding mortages for small homes and not ebing able tom pay them - good night.

The high prices wealthier people accept to pay for certain stocks and property, only illustrate one thing: how desperately everybdoy seeks for a way to preserve his savings and converting his paper currency "welath" into somethign material of real welath (=bartering power), and not beeing punished for owning paper currency by having to pay "negative interest". As if something like negative interest could even exist. By the meaning of the term "interest", it must always be positive. Interests are positive by defintion. Else they are no interests.

All these things have been pushed (perverted) to way too clever standards. We are too clever. And its our witty, super-bright cleverness that will destroy us.

The times are near when many people will learn the bitter lesson that paper currency and cryptocurrency will not by them stuff to eat, and stuff of real value. Because then nobody will give away something for nothing.

I admit I am very worried, and afraid. A lot of savings will be lost, with all the consequences for your and my higher age savings and life expectancy cuts. And no ordinary man will escape from it - only those at the top of the food chain who are responsible for this decades-long mulling of penultimate desaster. The hyperinflation of the 20s last century, was regional, becasue the potics causign it were regional. Today these things havbe been piushed to global dimensions, and so the desaster will unfold globally. Thats why I wnat pltlkicians beign keot at an ultra-short line, and am agaunst big state and super-national political organisations. I somebody messes it up on this scale, the entire planet is affected, not just one region. Power to the local regions! And keep it there! And keep any taxes there, too! And make any relation between state and citizen a law contract that can be sued for in case of violation! Hold polticla amdinstrators perosnally accountable with their private wealth and property! Do not accept decision-makers exemtping themselves from the consequences of their decisions! Same for corporation managers!

"I take the political responsibility" today is just an empty phrase that means nothing.The yget away with whatever it was. Thjey cna keep their wins and gains. They miust not comepnsate, they must not fear court punsihement, and they can even return from another direction, and continue. "They are accepting resposibility?" They explicitly refuse to do so.

Rockstar

02-16-21 11:38 AM

More on gold

https://www.youtube.com/watch?v=HJIShMETtYY

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