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Originally posted by Cabaret Voltaire
reply to post by GreenBicMan
Yes. I split my money 3 ways and bought FAZ, BGZ and TYP. I still hold them all. I'm going to double my money, or better, when this market falls.
I am trying to double my money every year. I tripled from early March to the last day of September, sold, and bought FAZ, BGZ and TYP.
(December 18th, 2009 at 4:13 pm)
You need to take a course in magical thinking to dispel this gloomy view you have of the economy. Both major political parties now offer weekend seminars where you can learn modern voodoo economics.
There’s no problem that can’t be solved with a combination of tax cuts and spending increases.
Forget those examples like Japan. We’re special Americans, where the rules don’t apply.
Originally posted by DangerDeath
Suppose, no one is selling gold, but someone is buying dollars.That's why price of gold drops, because dollar's price is going up.
The Barclay’s 20-plus-year Treasury index posted a 20 percent drop in 2009, and payouts on long-term Treasuries will almost certainly result in losses for investors.
Unfortunately, we may only be at the tip of the iceberg right now. Growing budget deficits, expanding federal bailouts, and general economic malaise could drag Treasury prices even lower, sapping more investor confidence and perhaps keeping future investors away.
The hardest hit will likely be individual investors who bought into the bond market hoping for a safe haven for their collective nest egg. According to Fortune, the U.S. household sector bought $178 billion in Treasuries during the height of the crisis. Those who didn’t sell in late 2008 when Treasuries were at their peak might be left with less investment than they originally put in.
It is absolutely key to understand that the production of agricultural goods is a fixed, once a year cycle (or twice a year in the case of double crops). The wheat, corn, soybeans and other food staples are harvested in the fall/spring and then that is it for production. It doesn’t matter how high prices go or how desperate people get, no new supply can be brought online until the next harvest at the earliest. The supply must last until the next harvest, which is why it is critical that food is correctly priced to avoid overconsumption, otherwise food shortages occur.
The USDA—by manufacturing the data needed to keep supply and demand in balance—has ensured that agricultural commodities are incorrectly priced, which has lead to overconsumption and has guaranteed disaster next year when supplies run out.
WASHINGTON (Reuters) - The Obama administration pledged on Thursday to back beleaguered mortgage finance giants Fannie Mae and Freddie Mac no matter how big their losses may be in the next three years.
Contrary to common belief, hyperinflation does not arise from too much bank lending. The sole cause of hyperinflation is always too much government spending. The pattern is as follows.
The government spends more money than it is receiving in taxes, which forces it to borrow. As these deficits grow, they eventually exceed the market’s capacity or willingness to lend money to the government. Invariably, the central bank steps in and provides the government with the money it needs by creating it – as the saying goes – ‘out of thin air’, or what governments today call “quantitative easing”. The central bank does this in either of two ways.
Much has been made of the huge bank excess reserves “sitting idle” at the Fed. It has been said that hyperinflation is not possible when the banks are sitting on such huge reserves, instead of lending them into the economy. This thinking is flawed because it ignores that there are two sides to the Federal Reserve’s balance sheet.
Those reserves are not just sitting there, as if they were in a vacuum. These reserves have funded the Fed’s purchase of US government debt, putting it and the US dollar on the road to hyperinflation.