Major News - wow, not good

flyupsidedown · Major News - wow, not good

What this is, is a major rising world economic power getting rid of US dollars before they depreciate further and exchange them for tangible 'wealth'. This is expected in the days to come from other world powers and it will be the beginning . . . of the end, for a while. Maybe a long while, however it will also be the beginning of our economic rebuilding. This is how all of our reserve cash around the world will come home to roost and initiate hyperinflation. They will sell dollars dropping the price and they will be virtually worthless, or so the predicted scenario goes. It is a high-wire act when to get out of USD and put your money in gold, silver or a relatively stable currency. All world currencies however are fiat currencies and are not backed by gold or silver. We're better off with the metals I think.

Gold Prices Hit Record High As India Moves Away From Dollar & Warns of Collapse of US Economy
Wednesday, November 4, 2009, 5:07 AM
Jim Hoft

Thanks Barack. India’s central bank bought 200 tons of gold yesterday after the finance minister warned the economies of the US and Europe had collapsed.
The Financial Times reported:

Gold prices continued to rise on Wednesday extending the all-time highs which followed India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the US and Europe had “collapsed”.

India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.

The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,090.90 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.

Pranab Mukherjee, India’s finance minister, said the acquisition reflected the power of an economy that laid claim to the fifth-largest global foreign reserves: “We have money to buy gold. We have enough foreign exchange reserves.”

This is definitely not chump change. There are 32,000 oz. in one ton and @ 200 tons that ='s 6,400,000 oz. Let's say they bought at $1050/oz. that comes to around $6,720,000,000 or approx. 7 billion. This will be the rumbling of things to come.

lemontrail · Re: Major News - wow, not good

flyupsidedown

That's right except with all the "Hope and Change" hoopla backing his presidency and his historical election promising . . . heaven on earth, he had a grand opportunity to do the right thing and reverse the direction. Instead he pushed through tried and true failure models of socialism and deficit spending. It called for something bold and different. Instead he just continues on except at break-neck speed. He has a major stake more than many.

Rain man

1980 High Prices Vs 1980 Highs Adjusted For Inflation

1980 High Prices Adjusted For Inflation todays price

Gold
$850.00 $2,275.00 $1095.70
Silver
$49.00 $132.00 $17.47
Platinum
$1,070.00 $2,865.00 $1356.00
Palladium
$250.00 $669.00 $355.00

Outsider

Roostercogburn

Outsider

flyupsidedown

Herbert Hoover
Herbert Hoover has been accused of being a do-nothing president who allowed the country to continue to slide into its worst depression ever. Some will grudgingly admit that Hoover did take some action, but that it was too little, too late. But the truth is far more complex. Hoover did intervene after the Stock Market crash, but the acts passed by Congress and signed by Hoover were the worst kind of intervention: they actually exacerbated the problem. The most famous of these interventions was the Smoot-Hawley Tariff Act. Raising tariffs was one of the worst things that could be done. Remember, both free market advocates and Keynesians agree that lowering prices would cure a depression, it's just that the Keynesians believe government intervention is necessary. A tariff does exactly the wrong thing by raising prices. Thus Smoot-Hawley was guaranteed to worsen any depression, not improve it. Other acts passed during Hoover's administration had similar effects of either raising prices or keeping them artificially high when they should have been dropping. Thus, it's not that Hoover was a do-nothing president, it's that he intervened in exactly the wrong way.
FDR
Ironically, FDR, the president who implemented so many government programs himself, was elected on a platform of a balanced budget and economic non-intervention. So what did he do upon getting into office? He promptly expanded on Hoover's programs. Some of these programs, the ones that increased spending, would get approval from Keynesians. Others, however, like the minimum wage and the Davis-Bacon Act, suffered from the same problems that Hoover's programs did: they reduced price flexibility, often setting a minimum and thus continued to exacerbate the Great Depression.

Major News - wow, not good

Re: Major News - wow, not good