GOLD

[patsy]

They like to work their evils under the radar and to keep the public in the dark and ignorant. I suppose if you have to choose between the two evils, you choose the lesser evil.

I get absof*ckinglutely outraged every time I hear Obama, Bernanke, Geithner, Gordon. Brown, etc. talking about bailouts, increase in govt spend and other euphemisms like "quantitative easing". They are raping all of us with complete and utter impunity. And one of the reasons they do it is because there is the belief that, whenever there is a problem/crisis, governments "have to do something". Just like this other clown Phil Goff, asking in Parliament to Key "what are you doing about unemployment?"

The proles have been inculcated that that "it is the government responsibility" to do such and such.... Don't they f*cking realise that times of crisis are times when the markets and economies are flushing out misallocation of resources? Don't they realise that bubbles represent misdirection of investments? and the sooner they let it de-inflate the better? But, no, we have some economic Nostradamus like Bollard, who is bending himself backwards to reinflate the property market and is forecasting that the economy will reinflate by the end of 2010 by which time he will have pumped enough money into the economy that the NZD will be toilet paper.

All this with total impunity because the politicians love fiat money and the proles love to open their legs and be raped by them.

[Aussie]

Don't they realise that bubbles represent misdirection of investments? and the sooner they let it de-inflate the better? But, no, we have some economic Nostradamus like Bollard, who is bending himself backwards to reinflate the property market and is forecasting that the economy will reinflate by the end of 2010 by which time he will have pumped enough money into the economy that the NZD will be toilet paper.

All this with total impunity because the politicians love fiat money and the proles love to open their legs and be raped by them.

Nice rant patsy . . .

As I understand it, the problem is that the global economy is based on a monetary debt system that relies on continually expanding levels of debt to increase economic growth. This is simply unsustainable and we appear to have reached the practical limits of growth under that system.

Trouble is, it's the TPTB's or "The Establishment's" system. They created it, they benefitted the most from it and the last thing they want to see is it go under. So they continue do the only think they know how to do to start it up again by inflating.

Today we are at a fork in the road. There are only two directions to go . . .

1) further down the fiat money rat trap with a completely cashless society where bank runs are rendered impossible because money will become just a concept. A that point TPTB can create all the money they want under a global authoritarian system that will completely destroy the idea of nation states, individual freedom and privacy. Eventually we will have no more money, just a system of credits on a card or chip the number of which will depend on how well you co-operate with the authorities.

2) a return to a sound money system that places serious limits on government while returning real prosperity and economic freedom to the hands of the masses instead of the few.

Which way do you think we are headed . . ? :mad:

[patsy]

we have some economic Nostradamus like Bollard, who is bending himself backwards to reinflate the property market and is forecasting that the economy will reinflate by the end of 2010 by which time he will have pumped enough money into the economy that the NZD will be toilet paper.

This may be slightly off topic but this link (published today) supports my rant yesterday:

http://www.nzherald.co.nz/business/n...ectid=10572011

This evidence suggests the obsession with reinflating the property market and the overall focus on doing so using the power of the monetary base and the fractional banking system at the expense of consumer price inflation and real wealth.

[Aussie]

This may be slightly off topic but this link (published today) supports my rant yesterday:

http://www.nzherald.co.nz/business/n...ectid=10572011

This evidence suggests the obsession with reinflating the property market and the overall focus on doing so using the power of the monetary base and the fractional banking system at the expense of consumer price inflation and real wealth.

NZ Sharetraders, have a think about the following paradox. I would welcome any comments on these thoughts . . .

The current low/zero interest rate conditions around the world are reflecting what "the market" (if left to it's own devices) would normally determine to be a low debt, high savings environment. Such an environment would normally only occur where there was glut of capital and so is therefore extremely cheap.

However, we know that today this is far from being the case.

In our present environment we have banks, governments and companies all around the world desperately competing for a decreasing pool of global capital. Normally, the market would interpret this as a high interest environment with interest rates rising to a level that begins to attract savings and investment capital until the economic system becomes re-balanced or neutral. So far this hasn't been happening, although in the last week or so the US Treasury market is starting to show signs of a turn.

If you understand and agree with this basic free market economic concept, then you are also seeing just how radically central banks around the world and the governments and the bankers who run them have distorted and ruined the world economy. You can see that it has in fact been been completely inverted, everything is upside-down, white is black and black is now white. Negligence and fraud is being rewarded while honesty and savings are punished. This is the new economic paradigm that "they" have created.

The NZ property market and Bollard's wishful thinking is nothing but an expression of our government's wish to continue distorting our so called "free economy".

It's my opinion that we either abolish central banks and have a truly free market system in every respect including sound money and interest rates that are related to the available pool of savings and capital or we don't have a free market at all.

[Aussie]

The next down-leg.

To all; GM and Chrysler are eliminating over 2,000 dealerships between them, this will be a huge blow to the economy at large. Think of the ramifications, this will lead to several hundred thousand more unemployed and then the ripples will start to move outward. This also represents quite a substantial amount of commercial real estate square footage that will become empty. The loss of jobs, franchises, suppliers, etc. all the way down to the local coffee shops is a definite body blow to any recovery or so called "green shoots".

This is absolutely a deflationary event, the Fed and Treasury will now need to create even more Dollars. Can anyone see where this is going? The more things deflate, the more the Fed and Treasury will need to inflate to counter this. This inflation, once into the system cannot be withdrawn. What they are doing now will result in hyperinflation, tomorrow, next week, next month, whatever, it makes no difference when, as long as you know where we are going. We are moving very rapidly to a completely different financial environment that will include totally different perceptions and thoughts regarding all financial assets. Psychology will change.

The equity market is rolling over from a loss of momentum, I believe we are primed again for a waterfall event very soon. If you thought the March lows exhibited panic, just watch what happens on this next downleg! You cannot trade here, you can't try to be fancy, you must have maximum exposure to anything precious metals related. We should witness a complete disconnect between Gold related assets and virtually everything else in this coming downleg. I am looking for "the day" where the equity market gets pummeled and everything precious metal moves hard to the upside. The bell will have rung!

Have a nice weekend,

Bill H.

[JBmurc]

well within 3hrs I will have another 1kg perth mint silver bullion an maybe a .3oz $200 gold coin an more silver coins
Also will look to buy some NEM etc shares from my Oil&gas holdings

[Aussie]

Can't Spend - Can't Save - Need MONEY!

On May 15, spot future Gold in New York rose $US 2.90 on the day to close at $US 931.30. This is Gold's highest close in nearly two months - since March 26. With the exception of a $US 10.40 jump on May 12, Gold's rise this week has been slow and steady, seemingly impervious to the goings on around it in other investment markets. Gobal stock markets have been inreasingly erratic this week. The US Dollar saw ominous weakness before a turnaround at the end of the week. US Treasury bond yields, although they fell this week, remain distressingly high. Through it all, Gold has climbed gradually in $US terms.

This is ominous - for the financial powers that be - since the distractions have calmed down for the moment. Two weeks ago it was the flash in the pan which was the "swine flu" scare. It is difficult to decide which aspect of this phenomenon was more outlandish, the speed of the buildup to global hysteria or the even greater speed with which it dissipated. Last week there was the (obviously preordained) "results" of the US Treasury's bank "stress tests". To expect any of the banks to have "failed" this test is tantamount to expecting the US rating agencies to downgrade the AAA rating of US Treasury debt paper. Yes, they occasionally make noises in that exact direction. But that's as far as it ever goes.

Without distractions, the inherent contradictions of the global financial and economic collapse are getting harder to ignore by the day. On the one hand, we have governments and central banks growing ever more profligate in trying to fill the hole which has been left by the collapse of the credit money system. How? By creating out of thin air grotesque amounts of new credit money. On the other hand you have the rest of us, those who do NOT have the ability to "print" our way out of debt or to create "markets" which maintain the value of our paper assets at levels which nobody is willing to pay - unless they can create the means of payment out of thin air.

This contradiction is slowly but surely seeping into the consciousness of more and more people everywhere. The questions being asked - if not out loud then definitely in the privacy of the mind - are getting harder to answer.

"Why do I have no choice but to cut my borrowing and spending when 'they' are borrowing and spending like there's no tomorrow?"

"Why is it that I can see the REAL economy where I live slowing down every day while the paper markets are not reacting to any of it?"

"Why do I read about the situation getting better when it is obviously getting worse?"

"Why are 'they' still rewarding people who borrow and spend while making it totally uneconomic for those of us who want to save?"

"And if I do save, what will happen to the purchasing power of what I am saving if the government persists with these policies?"

This last question is the most dangerous one, to the financial powers that be. In the English-speaking nations in particular but to varying degrees all over the world, "saving" is a concept which has been all but obliterated over the past three decades. Less than forty years ago, the exchange rates between currencies were actually fixed. In the twenty years before that, prices in most advanced economies were relatively stable. The combination of these two factors meant that anyone could actually save "money" in the confident expectation that the purchasing power of that money would remain relatively stable over time. Amazing as it might seem from the perspective of the almost four decades since 1971, most consumer prices moved hardly at all in the period between the end of WWII and the mid 1960s.

Even more amazing, there were a huge number of individuals in the US and everywhere else who never concerned themselves with the state of the stock market or bond market or the exchange value of the currency or the rates of interest available to them. They simply went about their business, consumed less than they produced, and stuck the difference in their savings accounts in the expectation that when they needed the money, it would be there - AND IT WOULD BUY THEM THE SAME AMOUNT OF GOODS AND SERVICES AS IT HAD AT THE TIME THEY WERE SAVING IT!

In short, they had the incentive to save and they had a money worth saving.

Contrast that to the present situation. The global collapse is in the process of radically changing the attitudes of most people. For three decades, living beyond one's means was regarded as the norm. It was taken for granted that in order to keep one's head above the inexorable erosion of the purchasing power of money, the investment markets had to be utilised up to the hilt. "Risk aversion" was whittled away progressively until, by the mid 1990s, it had all but ceased to exist. At the height of the insanity, less than two years ago, everyone was routinely using amounts of leverage that would have made the most daredevil investors in the futures markets of the 1980s (let alone the 1950s and 1960s) recoil in horror.

Now, that whole outlook has changed - RADICALLY. But it has ONLY changed amongst the individual citizens of the nation concerned. Those in charge of the "system" have not changed their methods of operation in the slightest. They have merely accelerated them to a grotesque and unsustainable extent. They are, in their attempt to "save" the system, destroying it.

Anyone who wants to preserve his or her purchasing power today faces two seemingly insoluble problems. First, with official interest rates at or below 1.0 percent in nearly all major nations, it is all but impossible to gain any type of a return on savings unless one takes HUGE risks. Second, and much more important, the actions of governments and central banks everywhere is guaranteeing a catastrophic collapse in the purchasing power of the money they are borrowing into existence. Inexorably, the only financial safety is to be found OUTSIDE the financial system altogether. There is the alternative of putting one's wealth in physical economic goods. And there is the choice of putting one's wealth in an alternative medium of exchange, one which CANNOT be created out of thin air. In essence, the choice is between real wealth and government promises.

As the choice becomes more stark, the attraction of the precious metals will increase. Just as real physical economic goods cannot be created out of thin air, neither can a viable money. And until the debate over what constitutes a viable and SOUND money emerges to centre stage in the current frantic debate over how to "solve" the current crisis, that same crisis will continue to worsen.

[peat]

http://broadcast.ino.com/education/g.../?campaignid=3

according to this video the close above 929 is important....

[airedale]

Gold closed above US$935. in overnight trade. Even the Nymex couldn't hold it down when it opened yesterday.

[JBmurc]

What are the best ways to gain exposure to gold?

It’s a question of risk profile. If you’re a person with a high risk profile you would buy explorers. Drop it down a notch and you would buy junior producers. Down another notch and you would buy a major gold producer. Drop it right down to the bottom and you would buy physical