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Hyperinflation v. Depression: Fiat$ Hyperinflation v. Depression: Fiat$

07-15-2013 , 05:40 PM
Recently I have gotten into the whole economic "thing" & I recently discovered that the "Fed" is as federal/governmental as FedEx & has shareholders.

That being said, all this Quantitative Easing & the money being invented is incredibly exorbitant to say the absolute minimum.

Is now the time to invest heavily in silver/gold/palladium etc....?

Is some type of crash inevitable in the next 2-10 years?!

Or will things work out and resolve &, or maintain normalcy in the long run?
07-15-2013 , 06:37 PM
I have yet to see evidence that suggests lol Zimbabwe coming to the US like inflationistas have been harping about for a decade.

Investing is something you should study before doing. I am not an investor. But the logical steps would be to study the markets you want to throw your money into. And from what I have seen I would avoid gold myself.
07-15-2013 , 07:28 PM
Quote:
Originally Posted by St.Mcflounder
Is some type of crash inevitable in the next 2-10 years?!
Nobody knows. We are in uncharted waters at this point.

Personally, I believe we are headed for a bigger downturn than in 08.

There are good arguments for both sides, find them and decide for yourself. Try to stay away from tards.

There's lots of finance and macroeconomics course lectures on youtube from Yale, MIT, Stanford, etc. I'd start there.
07-18-2013 , 10:25 PM
Don't let the shareholders fool you. The Federal Reserve is very much a federal agency. The shareholders don't get paid and have no voting powers. It's simply a requirement to participate in the US banking system.
07-19-2013 , 08:53 AM
Since WW2 the process of globalization has allowed capital to chase cheap labor all over the world which has pretty much zeroed out the value of manpower in developed countries. Thus leaving a stunning percentage of the population without the means to consume.

The middle class has been hollowed out to leave great income disparity. The attempted fix has been easy credit and this brings us to today.

China is the scary part as they no longer will have the market for all the excess capacity they have built up. It could be revolution or war.

Add to this the potential for a collapse of oil prices destabilizing OPEC countries.

The world is a powder keg.

Long term investment strategy should include being long on defense stocks I'm afraid.
08-31-2013 , 06:47 PM
The central banks of China and Russia are buying gold.
They have been doing so for quite some time now
I d suggest you be your own central bank at this point and do the same.
Some sort of new gold backed currency is likely to emerge.
The USD is about to lose it s status as the world reserve currency.
There s a currency war going on

For those who doubt the importance of gold:
http://www.reuters.com/article/2013/...97S0IW20130829
Gold is a currency.Real money. (Not a commodity).
Paper money is debt.

Last edited by dan233; 08-31-2013 at 07:01 PM.
08-31-2013 , 07:24 PM
lol
09-01-2013 , 10:48 AM
According to the gold cultists, the best way to protect the rupee is to increase the supply of rupees and the demand for gold.
09-01-2013 , 11:45 AM
Quote:
Originally Posted by grizy
According to the gold cultists, the best way to protect the rupee is to increase the supply of rupees and the demand for gold.
Sounds like that would just devalue the rupee further. The article mainly shows us how desperate central banks are getting.
All the main central banks are now printing money so you should put at least 10% of your assets in gold if you re a conservative investor.
Even Nouriel Roubini (one of the biggest gold haters out there) recommends that for protection.

Last edited by dan233; 09-01-2013 at 12:11 PM.
09-01-2013 , 04:25 PM
China's desire to become the world reserve currency is no secret. I don't think it would ever happen unless it was backed by gold to some extent, either explicitly or implicitly.
09-01-2013 , 09:03 PM
Quote:
Originally Posted by JimAfternoon
China's desire to become the world reserve currency is no secret. I don't think it would ever happen unless it was backed by gold to some extent, either explicitly or implicitly.
China is buying gold for diversification and to be included at the negotiating table when a basket of currencies (maybe the SDR) becomes the world reserve currency
http://www.forbes.com/sites/kitconew...-jim-rickards/
However, with all the money being printed, some central bank could very well have to go to a gold standard
Not because they want to, but because they find it necessary to calm the markets.

Last edited by dan233; 09-01-2013 at 09:32 PM.
09-06-2013 , 12:31 AM
Quote:
Originally Posted by grizy
Don't let the shareholders fool you. The Federal Reserve is very much a federal agency. The shareholders don't get paid and have no voting powers. It's simply a requirement to participate in the US banking system.
They get 6 % dividents obese their paid in capital. The bulk of the profits go to the government so. Like 95% or something. Not sure if I agree with no voting power, if that is supposed to mean no influence.
09-06-2013 , 09:00 PM
The shares are not voting shares. The Board of Governors Reserve are appointed by the POTUS and confirmed by Senate. The Board of Governors in turn appoint the presidents of the 12 District Banks.

The 7 governors and 5 of the 12 presidents make up the 12 member FOMC.

That 6% nominal at best. For all intents and purposes, the member banks get nothing out of the Fed other than the right to participate in the US banking system.
09-07-2013 , 06:33 AM
Quote:
Originally Posted by Paul D
lol
I notice you do this a lot.

Are you exhausted from having the debates in the past? Somewhat misanthropic, thus unconvinced they'll do any good to rehash? ... Or just quietly hoping people make bad investments, as you see them?

Do you have the same lol-ish dismissal of silver as well? All metals?
09-11-2013 , 04:16 AM
Quote:
Originally Posted by grizy
The shares are not voting shares. The Board of Governors Reserve are appointed by the POTUS and confirmed by Senate. The Board of Governors in turn appoint the presidents of the 12 District Banks.

The 7 governors and 5 of the 12 presidents make up the 12 member FOMC.

That 6% nominal at best. For all intents and purposes, the member banks get nothing out of the Fed other than the right to participate in the US banking system.
They get the bailouts, access to the 0% fed money. They get access to the discount window. The fed buys their junk mortgages and if they really need money they will buy their treasuries probably bought with money they borrowed at 0%.
09-17-2013 , 10:57 PM
Canadian Billionaire Predicts The End Of The Dollar As Reserve Currency; Warns "It's Likely To Get Ugly"
http://www.zerohedge.com/news/2013-0...ikely-get-ugly

      
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