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No, I recommend buy low, sell high. It's just that your perception of value these days, what's high and what's low, is off, WP.
Worthy of a repost...Maybe some Kruggerands too. Anything that can't be inflated so easily. For some reason people want to tie gold or silvers value to Federal Reserve Notes when it CANNOT be done. It's just that simple. Gold will hold it's value no matter what any other paper "currency" does. Now if you could take your $20 FRN down to the bank and redeem it for $20 in gold it would be a different story. Remember what a dollar is by definition and this is according to the Coinage Act of April 2, 1792. It is based on the Spanish milled Dollar 1) Silver- 412.5 grains, 90% pure, 10% alloy added for strength and durability. 2) Gold- 27.5 grains, 90% pure, 10% alloy added for strength and durability. Article 1, Subsection 8, US Constitution states the Congress is responsible "To coin money, regulate the value thereof, and of foreign coin, and fix the Standard of Weights and Measures". Also and this is most important, the government coined and issued our money "
DEBT FREE". No interest would be paid to the Federal Reserve or anybody else, that is why this foundation is so very important. When Congress illegally gave their money making authority away to a foreign entity by allowing passage of the Federal Reserve Act and the Income Tax which is also illegal, the stage was set for the destruction of the United States. Section 19 of the Coinage Act states: If any of the said officers or persons shall embezzle ANY of the metals, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer DEATH. Such was the importance of an honest money system to our ancestors. This is what our country was founded upon and it has been corrupted completely, even the scriptures talk of this. And our country was based on that once too, you CANNOT build a house on sand as when the storms come it will eventually fall, and our Creator HATES unjust weights and measures because it enriches a few and steals from the many. This is the situation we find ourselves in today. I don't know how much more plain I can make it. There are plenty of books and resources where history and these concepts can be studied, there isn't enough space here to cover it all. Most of this is just common sense stuff, you don't need a degree in Economics to figure this out because they won't teach you these things anyway. There is no "mystery" to this at all.
Hahahaha, 3% rates? Hahaha, why wouldn't people get themselves into more debts and keep borrowing? Why should American families save and work off their debts when the real interest rates are lower than the inflation rate (already tortured to the low side by the government)?
No, but once the masses realize the pyramid scheme that is today's U.S. economy, they won't wait for anybody to tell them to head for the exits.
The unsustainable economic expansion of China creating a bubble in the Chinese economy? First of all, let me pretend that is the case, as any layman may find that agreeable seeing how China's latest inflation numbers are some 7%. But even if there is a "bubble" (the term was used incorrectly in your post) in China, even if the corrupt Chinese banks, and they are very corrupt, go belly up on their corrupt loans, the Chinese government have the money to fill that hole, all of it... nothing will pop in China. All because their economy is growing, is actually creating wealth, by manufacturing, by making items that foreigners will have to hand over money for (as a sidenote, if they should start disliking what they're getting for the goods they're handing off, they will start demanding something else more tangible), they're inflation is accompanied by REAL GROWTH. Which leads to the following: there is no bubble in China, just inflation that can be managed. The Shanghai stocks, the housing "bubble," will not pop, deflate a little, maybe, but not pop. The money has no where to go in China; those hard working, hard saving Chinese have no where else to put their money.
That makes one of you; I do appreciate and care about what you have said, but was just a little let down by the last post. Guess I am the only weirdo in here...
That logic is certainly true, and is what most folks think will happen before the gig is up. But the truth is, foreigners don't need to "dump" their USD holdings to crash the dollar. The dollar is already stretched too thin to require any dumping to get burned.
That's the understatement of the century...
I guess that's about as much economic understanding as can be expected of you.
Citi still has alot of Level 3 assests to sort through, and when they have, they'll have writtend down alot more losses then they had the past quarter. Their shares may rebound eventually, but it'll get worse before it gets better.
