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_w_

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Everything posted by _w_

  1. Because all that new money is destined to end up in the pockets of connected people. In the meantime the poor people fight each other to death over the few crumbs left to them. Nice.
  2. I was also wondering about Warren's investment in Bank of America going sub $4. I was expecting him to get his bailout sooner or later, the legend must live on.
  3. I would have thought quite the opposite. The Fed is swapping badly wanted dollars for euros it won't use. Those dollars will be turned i9nto euros, yens and whatnots.It should bring the dollar down. Assuming nothing else blows up in Europe in the meantime of course.
  4. Increased credit makes prices go up the same as CB printing. Most of the 'money-cum-credit' went into goods that were not recorded in the CPI or RPI but raised prices in aggregate.
  5. Unfortunately prices paid reflect someone's income. Rising food prices mean greater income for farmers or supermarkets. Since absolutely everyone is overindebted after a 15 year credit frenzy thanks to our freidnly local banker any income rise wherever it arises is a relief. The biggest problem is with imports where only a tiny fraction of the income rises are transmitted to the UK economy.
  6. Fiat means given value by government decree. Its first instantiations used a popular barter item. gold. Gold's intrisic value was not that given it by fiat. Gold's value was derived from its acceptance as payment for temple dues, a vital tax and religious function in those days. Edit to add: just to make it clear, once gold became fiat money its value was solely determined by decree and its inherent value at the time became irrelevant. Gold's inherent value as a means to pay temple taxes or religious artifact is obviously completely irrelevant today.
  7. We don't have time, house prices are going back up don't you know? Time to rebuild that BTL portfolio.
  8. It is the ultimate objective! It is called forced dissaving, it's probably been in every central banker manual since the 17th century. Yes, a large number of people will fall to the bottom but you can't make an omelette without breaking a few eggs. Anyway, the tiny minority that matters will do extremely well out of it.
  9. Gold started as a barter item. Probably given value because of its yellow reflective and non oxidising properties, perfect to represent the Sun God, Ra or whetever he was called at the time, life giver, grower of food, master of seasons etc. It moved on to being a form of payment to temples in return for all sorts of religious / agricultural services. The minute it was stamped into coins (temples were the first IIRC) it became fiat money with no higher claioim to being money than paper, tobacco leaves and all other forms. Law gave it its monetary status and no law that I know of today says it is money. So it isn't.
  10. I have serious doubt about individual investors stocking up. A minority of very enthusiastic and voiceful people is moving into gold but the majority of buyers of gold are large operators IMO. It's hard to prove but that is how it looks to me. Which leads me to Injin's suggestion to ask people what they want most. To be more valid I think the question needs to be rephrased to: what do people with money want most. Here's what people with lots of money want most as far as I can ascertain: - A return on their capital - Failing that a return of their capital (obviously including inflation, tax and regulation protection). There are very few, if any, invesment options that offer any of the above today. You also have to wonder what the central banks are up to. No, unless you are the victim of a superiority complex they are not retards.
  11. Haven't we predicted every possible scenario though? I'm not sure it would be of much use.
  12. This debate is as polarised as ever. It looks to me like the 'bears' are more emotive than the 'bulls' these days. Interesting.
  13. You could also consider that since an oversupplied labour market is pretty much guaranteed and actively engineered by the government, investing in your wage earning capacity may be a very bad move. Some of my currently unemployed 'highly educated' friends are planning for the possibility that they will never work again, at least not earning anything cliose to what they were earning before. They are 40+ and fast becoming unemployable. One of them works on IT systems for the hedge fun industry, none of them for the public sector.
  14. I can't resist despite the 'Genuine question' . Because the country does not need to completely rebuild its manufacturing base. In the face of overcapacityy in a globalised world and added large wage disparity between said country and the rest of the world any attempt to do so would result in negative returns for an investor.
  15. Force pension funds to buy government bonds to maintain regulatory capital ratios.
  16. The fault lies with both. The borrower also is supposed to do his own due diligence on his ability to repay. What we've had here was collusion between both lenders and borrowers to disregard sound financial practice. Both should bear the cost of cleaning up the mess.
  17. I just came across an article about an Ikea just outside Beijing. Lots of people go there for a nap on the display beds, to read books on the sofas, or to take measurements with their local carpenter to make copies of the items for sale. It was quite amusing.
  18. This sounds like a rehash of an old rumour that turned out to be fabricated. There's no reason to think this one has any more credibility is there?
  19. I guess it takes one to know one. Apologies to all other readers who are getting tired of this, I will try to refrain from posting more on the subject.
  20. I would think today most do it as a choice. Although there is also some proper slavery going on.
  21. You need to understand what a depression is, we are writing about different things.
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