Crap, now I'm really confused

Discussion in 'Financial Cents' started by Tango3, Feb 26, 2009.

  1. Tango3

    Tango3 Aimless wanderer

    from latoc doom financial board:
    <table style="table-layout: fixed;" width="100%" cellpadding="5" cellspacing="0"><tbody><tr><td rowspan="2" style="overflow: hidden;" valign="top" width="16%">

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    </td> <td valign="top" width="85%" height="100%"> <table width="100%" border="0"><tbody><tr> <td valign="middle">[​IMG]</td> <td valign="middle"> gold going to 300 says the wallstreet underground
    « on: Today at 09:20:33 AM »
    </td> <td style="font-size: smaller;" valign="bottom" align="right" height="20" nowrap="nowrap"> [​IMG] </td> </tr></tbody></table> <hr class="hrcolor" size="1" width="100%"> by nick guarino from the wallstreet underground. sorry, i couldnt get the charts to paste.

    Federal Reserve Chairman Ben Bernanke told Congress yesterday that the U.S. economy is in a “severe contraction.” Gold responded by falling 50 bucks, to $960 an ounce.

    That was the most gold has fallen in six weeks. So much for the idea that the world will keep flocking to gold, at record prices, as a safe haven!

    Please don't get taken by the fairy tale that you "should buy gold." The truth is, demand for gold is growing weaker, not stronger. That's because the smart money knows we are not in an inflation. We are in a deflation. And in a deflation, gold is the worst investment you could ever hold.

    Prices around the world are falling. Demand is dropping, for everything from cars and food, clothing and industrial metals (the building blocks of our economy). As more and more people lose their jobs, this can only get worse. Lower prices. More Deflation. Crashing gold prices.

    Wall Street wants you to believe the Fed is going to turn on the printing presses. "They have to, to fight the downturn," say the experts on CNBC.

    Bull shit. The U.S. government is getting all the money it needs -- by borrowing, not printing. ( ITSALL FREAKIN NUMBERS what's the difference whether it gets turned in to paper frns first?)
    0rtGovernment borrowing is NOT inflationary. Just the opposite. It sucks money out of the economy. It is deflationary. It means there is less money to bid on all those goods and services.

    Gold spiked above $1000 an ounce recently. But it could not stay there. In fact, gold immediately fell back – despite the news that the world faces more and more economic panic. This is yet another sign of how weak gold's fundamentals really are.

    I see every amateur and (hahahah!) “analyst” under the sun ballyhooing gold these days. I just can't help myself. Everyone wants to buy? I just gotta sell.

    Another sign gold is headed DOWN

    Look at the chart above. It's one of my favorite gold indicators. The black line shows you how global liquidity (simply put, how much money the world has) has changed. The yellow line shows you changes in the price of gold.

    As you see, gold moves nearly hand in glove with global liquidity. Global liquidity (global money) has fallen hard. That is because debt around the world has gone bad. Remember, debt default is money destruction. Money is getting destroyed: gold will soon follow, just as it has for the last 35 years.

    This next chart clearly shows how the growing debt defaults in the US are destroying total money. Incredible money creation peaked at the start of 2008. Ever since then it's been falling. The blue line on the chart shows you how much it has fallen, in percentage terms. Currently over 5%.

    Debt defaults are destroying money. The bailouts and stimulus programs don't have a prayer of keeping up with the money destruction. The debt wipeout – that the derivatives caused – is shrinking the money supply.

    So when they tell you to buy gold -- because all this debt going bad bail outs will causing a huge increase in printing press money, that will lead to massive inflation – please excuse me while I vomit. They don't have a clue in the world what they are talking about.

    They could run every printing press in the world, day and night. That would not stop the NET drop in total money in circulation. Debt destruction is money destruction. It's taking place on an immense scale.

    This is the classic deflation/depression. It is why I regard selling gold through ETF's as one of the top trades of the year.

    The trillions in government loans to banks: also DEFLATIONARY!

    For one simple reason. Banks are not loaning out all that bailout money. They are holding onto it for dear life.

    Bankers know they must soon book hundreds of trillions in losses. They know the vast majority of any loans they might make, will never get paid back. They are praying they can cover at least some of their bad debts, by hanging onto the money the government has given them.

    The bailout money never gets loaned into circulation. It stays in bank vaults, literally held in treasury bills at zero interest as terrified bankers hope to cover their asses. It is deflationary.

    No one can pick the exact peak of gold we don't ever try. It could rise another 100 bucks or more from here or could begins its death plunge. Even it it rallies a little it is clear that the end of this latest party is neigh.

    But with the trades I'm recommending to you, it doesn't matter when gold crashes or how much it rallies from here. Gold can rise higher, and it won't cost you another penny. You only risk your initial investment. Not a dime more. So sit down take deep breath and relax.

    Soon gold is going to peak and come crashing back down. Just like oil did. Just like real estate and stocks did. The higher gold goes, the bigger the crash. And the more potential profits you can make by SELLING gold now.

    I believe gold is within a hundred bucks or so of the highest price it will achieve for decades to come. By year end, I expect gold to trade in the $300 to $375 range. Very possibly under $300. I could be wrong and you know it. BUT this is hat I believe will happen.

    If I’m right, the reco's I'm giving you could make you a small fortune. What's more, your profits could be worth two or three times what they are today. I expect prices for just about everything to keep falling. Each dollar you have will buy you far more than it does now. Less and less money kicking around the system makes every dollar you hold worth more and more.

    You need to stash your CASH in your mattress. Within a year, this depression will be much worse. Cash will be one of the most valuable things on earth. For the conservative part of you portfolio stash it in your mattress. Now for the speculative portion of your holdings, money you can afford to lose I believe gold is a GREAT trade. I believe you could make some serious cash by SELLING (not buying!) gold.

    well this comment makes sense(?):


    You are all under sheepnosis. Move along.

    [​IMG] [​IMG] <table width="100%" border="0"><tbody><tr> <td valign="middle">[​IMG]</td> <td valign="middle"> Re: gold going to 300 says the wallstreet underground
    « Reply #11 on: Today at 10:06:45 AM »
    </td> <td style="font-size: smaller;" valign="bottom" align="right" height="20" nowrap="nowrap"> [​IMG] </td> </tr></tbody></table> <hr class="hrcolor" size="1" width="100%"> Demand for "physical" gold is NOT getting weaker. This guy is a crooked ****wad cheerleader for the banksters trying to juice money out of people who don't know any better.
    </td> </tr> <tr> <td class="smalltext" valign="bottom" width="85%"> <table style="table-layout: fixed;" width="100%" border="0"><tbody><tr> <td colspan="2" class="smalltext" width="100%">
    </td> </tr><tr> <td class="smalltext" id="modified_560801" valign="bottom">
    </td> <td class="smalltext" valign="bottom" align="right">
    </td></tr></tbody></table></td></tr></tbody></table>:oops:[peep]inflation, deflation gold good gold badseesaw??? gaahhh..
  2. SLugomist

    SLugomist Monkey++

    I heard that the powers to be, do not want gold over 1000.
    This would be the third time in the last year that it has went to 1000 and then almost immediately fell.

    I for one would love for gold to go to $300, then I could get more of it.
  3. Jonas Parker

    Jonas Parker Hooligan

  4. Cephus

    Cephus Monkey+++ Founding Member

    This is the first time I've seen the American,Canadian and the Krugerrand at the same price in many a year ,not that I watch it that close either.
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