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House Price Crash Forum

sharpe

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Everything posted by sharpe

  1. i am big - i ask for you geese at a market - you say no, I take your geese anyway - what stops me doing that?
  2. Does that depend on what the laws are? You might outlaw slavery - so there will be no free market in slaves etc... In principle I could imagine a free market requires a state to function
  3. In practice, most examples of stateless societies have been pretty terrifying. Without any state, there is a tendency for people to prey on the weak, murder, rape and enslave - there is empirical data centuries long to justify this statement - feudalism is brought into existence by the weak begging for protection. so the questions arises as to what laws are needed to prevent this hell. Once you have laws, what do you do when they are broken? you need enforcement - hey presto a state.
  4. who does impose it then? or does it just come about effortlessly - like communism was supposed to? Communism is also the absence of a state - except in that world there is no need for property rights - and no need for people to lawlessly respect property right - at least that is what Marx claimed - who knows. Economics is not a science, so i suppose the gap is filled by religious certainty.
  5. I missed the US inflation numbers yesterday but shocked that it's it's so different to the UK numbers. So if one excludes things going up in value then we have deflations. How about including food and energy and shivering in the wake of the double digit horror. My experience of food inflation is well into double digits - somethings triple digit. That food and energy are not "core" tells you all you need to know about that measure.
  6. But you just buying the rights to what the original investor bought - so you are taking over their original investment - in principle it is not different to the original investment. Like saying buying a new house is different from buying one that has been lived in and treating that differently for tax. Your share purchase may boast the price which as you rightly say will allow tesco to raise further capital in future at a better rate.
  7. PM is talking about taxing actual trades (presumably as well as income tax on dividends and capital gains on sale) The effect would be to discourage active trading and also investment - the latter I am questioning
  8. When you buy tesco shares are you putting up capital for tesco to use for further investment? Essentially you are further contributing to tescos growth, whilst risking your capital. In a capitalist society, this is potentially productive investment and your funds are being more actively used that if they are under your bed. Should such investment not be encouraged?
  9. Is there a disconnect between the physical and paper market? Like all the ounce coins go off coininvestdirect.com, the premium is 10 percent and the actual gold price falls.
  10. the former is my guess - for the next few years. a crash would have to be down to below 300 dollars, that is where it was not that long ago.
  11. Personally I value assets at market value - in line with international accounting standards You will be able to work out your loss when you sell dollars for gold, willingly or unwillingly via the next gold standard
  12. What loss? As I said gold is an all time high in pounds - no pound investor has made a loss right now. The gains have been huge - several hundred percent in the last few years. As the soverign debt crisis escalates, gold will go higher. People are still rushing to the dollar and the yen, but ditching the euro. Take a look at the US and Japanese finances.... Gold is a good bet for many years to come
  13. It has not fallen at all in pounds, but is at an all time high. If it does fall I will buy more. 300 dollars an ounce...
  14. The empirical data you presented seems to directly contradict the "paradox of thrift". There are a lot of VIs pushing the paradox of thrift to lower interest rates and encourage spending. I am sceptical about it.
  15. Thanks - that is really interesting. It seems key to me - does it contradict the "paradox of thrift"? The way the economy is run seems to be to avoid deflation at all costs - perhaps that is wrong?
  16. In zimbabwe the government printed money. This prevented collapse of the banking system. It also wiped out all Zim dollar liabilties.
  17. There is no VAT on gold in the UK, although there is on first habd silver. I have never heard you need to declare to HMRC all gold purchases (and find this difficult to believe). Over 10 grand and you might need to as I have heard something about such purchases requiring further personnal details.
  18. Thanks - do you have a reference for the rothbard stats. Am I right in thinking Rothbard thinks deflation has no economic impact overall?
  19. Does it depend on the willingness of the government to print money? As to whether we get deflation or high inflation. Deflation hurts the government and it essentially has a choice to not have deflation by printing money
  20. Injin will learn there is little substitute for gold, silver is ok to a lesser extent. The man in the street knew this for 5000 years until about 30 years ago.
  21. They can all hold a portion of assets in gold - the price will just go very high. Why would that create deflation?
  22. Fat thinking... What is the alternative - the pounds with a 0.5 percent return 5 percent official inflation and 10-20 percent actual inflation? Any saver will start to move to gold - for default and inflation protection. Once large pension funds start to do and and the ordinary man in the street remembers saving in "sovs" there will be a step change up in value.
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