yowsers, nice $60 drop there, returning to price levels of last week again again

Yes you are right as its goods and services produced here. In this example JNJ is producing the service of organizing shampoo manufacture and distribution worldwide. (think about the paid services of all the individual workers in the JNJ headquarters for making this happen) This service counts towards US GDP even if no manufacture or sales occur in the US itself. Im not saying the entire gross shampoo sales numbers count towards GDP but the gross profits do. And again this is where currency fluctuations come into play with US GDP.

Similarly a financial firm contributes towards US GDP by organizing financial mergers/sales worldwide even though no business may be conducted in the US itself. Its a service produced through a US based company.

Again things get more complicated when large multinational corporations have various entities set up worldwide to skirt taxes and such but the basics don't change in simple examples.

Gold is crazy right now. Rally $300, break $200, rally $200, break $100. Man, that is wild.

they are one thing

Rally 500, break 300 is just a matter of time.

Krugman: Surging gold prices signal deflation threat, not inflation threat

in b4 "lol krugtard"

That was actually one of his more interesting articles. I do think there are deflationist austrian-types that have made arguments the gold does well in deflations as well as inflations. I think Mish was one of them but I am not really sure what their arguments are.

I also liked this guy from the comments

Krugman should have read Barsky-Summers as he linked at the bottom. It makes a mention of the relationship between the real price of gold and the real rates of interest.
It is true that gold can rise in a deflationary environment if its monetary use as a store of value outweighs commodity usage. Since real interest rates are low or negative, gold as a saving becomes more enticing.

What Deflation is in a fiat system ist a lack of (private) debt, equaling declining demand for $$, representing a "distrust" in the monetary system. In that Scenario $$ going into Gold, will still happen, still drives the gold price.

Ultimately resulting in irrelavance of the $$, that is why deflation is so dangerous in this system since it ultimately leads to the downfall of the system.

It is not about supply of money it is also, as always about demand.

Hyperinflation can only result because of deflation - deflation in a free-monetar market is something different, though.

He did not listen/ read other people's posts very well, and always felt attacked even if one was actually agreeing with him. The hate for free-gold in this thread I could not share what so ever. Since it is far superior to any gold standart.

What I think however is that the concept of freegold does not really matter it is the free MARKET that matters and freegold supporters just use a different angle.

Mah coins came from the stars apparently, kewl?

http://www.bbc.co.uk/news/science-environment-14827624

Welcome to the Currency Wars

http://www.zerohedge.com/news/guest-...-currency-wars

Nobody hated on freegold. The hate was entirely on JR's side because he could not comprehend the difference between a government gold standard and gold as money.

I know you took the brunt of his aggression Boro, but man, those were some funny times

New avatar?

Ya, lol, the other one was getting old although I'll miss its ironic imagery. New one from pics of Ridley Scott's upcoming sci-fi movie Prometheus

PS poast more of the good ZH articles. I had to take it off my news feed just because their quantity of poasts was overwhelming. Your ZH public service announcements are much appreciated.

Just put order in for $5k of CEF and $7k of GTU in my IRA.

I feel like Im part of something now!

Upswong this morning to $1885.

Swongs have been pretty wild since the peg(s), probably some good fortunes made and lost trying to game those heh

As I said he did not listen very well - but you kept insisting that emitting any Fiat is counterfitting - which also is not true. I still see a problem in a pretty much fixed money supply, because true deflation, meaning actually appreciating currency (in the function of a medium of exchange) in real terms poses a thread to all investment.

WTF I get back from a morning 5 mile run and we're dropped $50 like that?

I might buy some miners this morning for my IRA if there's enough of a dip.

not exactly going out on a limb here given the europe situation but I'd be surprised if it wasn't at 2k by the end of the month

That would mean that productivity outpaces moneteary increase. Or in simpler terms with a quasi-fixed monetary base it would simply mean an increase in overall productivity.

For starters by definition this can hardly be bad for overall stock investments (assuming more productivity = equal or more profits). Keep in mind that companies also buy factors of production and workers with a higher purchasing power of money.

If I simply hold more money...well good I can now buy more stuff.

That's not what I said. Printing a legal tender is essentially counterfeiting, because Joe Blow has no say in whether or not he is forced to participate in the debasement scheme. I understand the "free banking" types, but imo they are simply wrong that anyone would accept a pure, irredeemable fiat currency in the absence of legal tender laws forcing them to do so.

A) The gold supply is not fixed. It grows steadily every year and market forces ensure that the return to gold production is in line with the general ROI in the economy, and B) an appreciating currency does not threaten investment. We've been through this a million times.