"We need to diversify the global currency system, to support its stability through the use of different currencies"
- America's Landlord and Owner, Premier Wen Jiabao of China, October 2008
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PerpWalkWatch - # of Hours New AG Eric Holder Has Let Angelo Mozilo Run Free
Eric Holder and Barack Obama
Failure to
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Angelo Mozilo
2862 Hours
(countdown suspended 6/21/2009)
ERIC HOLDER - YOU ARE A COWARD
DO YOUR JOB
(UPDATE 6.4.09 - SEC CHARGES MOZILO WITH INSIDER TRADING. YET ERIC HOLDER STILL SITS ON HIS ASS AND DOES NOTHING)
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11 comments:
Keith,
I should have added, I do own some gold and I took physical possession. Also have silver--a boatload.
Here is trade that I'm considering...
- Borrow $50,000 (max loan amount) from my 401K to buy gold
- I pay myself back at ~5%
- The 401K is only earning 3.5% in a "stable" value fund
- 401K runs of the risk of seizure or "stable" value fund collapse
The initial purchase puts the full amount from the 401K into gold, as if the 401K held gold, and protects that amount from possible losses in the 401K fund. That all gets diluted as I pay myself back, and this only works if gold takes off. Normally I would consider a move like this totally insane, but these are not sane times. Any thoughts?
"I would consider a move like this totally insane, but these are not sane times. Any thoughts?"
That you are even considering this "insane" move means that millions of others are considering doing the same with their IRAs and 401Ks right now. It tells me the crash in the markets has a long way to go before we get a bottom...
Timber!!!
Here's a thought for Tyrone.
Cash entirely out of your 401K in the first week of Jan 09. That way you take the tax hit a year later.
Buy as much Gold and Silver Physical as you can get your hands on and don't worry about paying what seems like large premiums.
In April of 2010, sell only as much as you need to pay your tax hit. Keep the rest for your retirement.
When you are retired, sell only what you need to live on. Leave the rest to your kids TAX-FREE!!!
Here's my take
Diversify
That's all.
There is no sense in holding your entire net worth in US dollars. Spread the risk.
I see NO scenario where the dollar doesn't fall because of this massive money printing. And we're not even close to being done. Trillions and trillions more will be needed.
Here's the key piece from Bernanke's helicopter speech. Please, everyone, re-read that speech. You'll be glad you did. You will have seen the future.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm
The conclusion that deflation is always reversible under a fiat money system follows from basic economic reasoning. A little parable may prove useful: Today an ounce of gold sells for $300, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
DO NOT pay up for gold in the physical market. As always the retail investor makes mistakes and has bought so much gold when it was $900 and they likely paid over $1000. Gold shares, Gold ETF, thats all FINE. Forget Faber who thinks the govt will take your gold holdings or the ETF doesnt work. By that time gold would have skyrocketted anyhow. Listen to Keith. Diversify, and dont follow the sheep. Just look at all the Gold TV informercials
Deflation Deflation Deflation
NATION
http://www.cnbc.com/id/27954850
He must be scared sh*tless. China is so F'd.
Keith said:
I see NO scenario where the dollar doesn't fall because of this massive money printing. And we're not even close to being done. Trillions and trillions more will be needed.
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correct but people should not bet on another currency rising. All major currencies will drop so invest in real things. oil. gold and eventually revenue producing land when prices come down enough.
Keith, since you posted the quote of the day, I will provide you with the article of the day. This one is so good and so laughable that the term "Toxic wife" will soon join the suzanne researched it hall of housing panic/soot& ashes fame. Btw, you didn't gimme kudos for the last article I gave ya to post on what else was spent that exceeds the cost of the bailout (eg nasa, marshall plan, etc). Here it is: http://tinyurl.com/5sdbjf
what did Bush say to Wen Jiabao at last meeting???
extra starch , pick them Monday!
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