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About grjack

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  1. By using smoke and mirrors and an implicit "special relationship" dollar peg. Why have we got all this long term debt(sold to us as a virtue) and yet rates stay relatively low ? Looks to me like the UK is pulling the FED stunt of rolling the short term debt into long term debt and selling put options "insurance" to cap the rates. This is how it works :
  2. The problem is that the act of interfering in the market by govt distorts and amplifies the cycle, to the point where the numpties think they have abolished the cycle.then it crashes.
  3. Sorry to ruin your day. I posted this because I see many people say they cannot understand why the fundamentals are so bad yet the bond prices are relatively low. I was not aware that all people knew the BoE was surreptitiously THE gilt market. Hinde Capital's numbers are either right or wrong, but I do agree that their gold sales pitch is weak, I know nobody here needs a gold sales pitch. I in order to "erode" the US's total debt of about 360% of GDP, via inflation they will have to inflate pretty much to zero, in a competitve devaluation death spiral with the rest of the world. Currently the US credit mountain is worth $55Trillion, and that represents multiple claims on a fractionally smaller real asset base. That credit mountain falling is DEFLATION, and in order to offset that entire collapse(without overshoot)they will have to create $55Tn in new cash, and then they have just broken even and only swapped one debt based instrument for another. Even if they only swap 2/3rds that is still a huge number. Savers and pensions gone many times over. The profligate stealing from the prudent. As for growing their way out of it. Their peak GDP was about 3-4% more than their current GDP, and that was in a false fiancial sector/housing bubble. That debt of 360% of GDP was measured during the bubble(See PIMCO talking about that number at least 3 years ago, it is probably more now). So how much GDP do you need to get and how is that going to be achieved , to grow your way out of the debt and sooner than within 2 or 3 generations or more ? The UK is in far worse trouble, our total debt is at least 466% of GDP. Bust in all but name.
  4. The left hand is borrowing from the right hand. Scroll through the slide show. Chapter and verse,the UK is worse than Spain by any measure, worst in the world by some measures. Note Slide 28 "BoE becomes the gilt market". http://www.businessinsider.com/ben-davies-presentation-2011-11#-16
  5. That is because nothing is as it seems. Want to know why rates are so low and gilts so high ? The Bank of England is buying them. Ponzi scam, the left hand is borrowing from the right hand. Scroll through the slide show. The UK is worse than Spain by any measure, worst in the world by some measures. Note Slide 28 "BoE becomes the gilt market". http://www.businessinsider.com/ben-davies-presentation-2011-11#-16
  6. The take home message is "PEAK OIL", from the USA client state. Can't have petrodollar hegemoney without peak oil. Can't have a MIC without petrodollar hegemoney. Can't have alernative energy source dominance and have the petrodollar as the reserve currency. Big gulf oil blowouts may serve petrodollar hegemoney, even if accidental. Peak Oil is good if you are a client state of the petrodollar empire.
  7. A necessary risk when the question posed is a reformulation of the "same old question" ?
  8. Money is not a figment of the imagination. It is a commodity, the universal commodity of exchange. A universally accepted claim on goods and services. Money is the universal token of barter. It is only universally acceptable because it has certain properties : 1. fungible 2. divisible 3. durable. 4. non-counterfeitable 5. desireable 6. low industrial demand 7. portable etc etc When you take all those properties into account there are very few commodities that qualify as money. Gold has more of these properties than any other substance known. Fiat only becomes currency due to the coercion of the legal tender laws. ie govts FORCE the money onto you by fiat decree. In a free market participants would choose the best currency that meets most of the properties of money, and they would choose gold. When this fiat paper ediface collapses, as it will as sure as the sun rises, then gold will still be left standing, as it always has.
  9. NS&I index , not for me. The pound has lost 25% against the dollar in the past 18 months, the NS&I index has not compensated for that. RPI, CPI or whatever other rigged inflation index they use never tells the true story. The govt pays pensions and workers linked to inflation, so they will always choose to under estimate inflation. Gold bullion is the only investment that has and will protect you in these credit crashes and fiat currency debasements. Gold is a currency. It is money. If you believe we are done with the credit crash and/or the fiat currencies will not weaken further, then buy the NS&I index. Else buy gold. IMO
  10. The Fabians who now comprise most of the Labour party come out of a long line of Eugenicists and elitists who pay lip service to democracy, but in fact look upon the people as riff-raff. They have probably infiltrated much of the US ruling class : ""…Above all they were avowed elitists, intolerant of the cumbersome and apparently wasteful processes of democracy, who wanted to see England ruled by a superior caste which matched an enlightened sense of duty with a competence to govern effectively. All of them, moreover, shared Sidney's belief -- which had led him to spend so much effort on London education and on the School of Economics -- that social improvement depended upon the training of the superior manpower needed to carry out schemes of reform. Shaw was suggesting in his latest play that universal suffrage was a disaster, putting power in the hands of the 'riff-raff' and...Webb who could not wait until a new race of supermen had been bred up to establish the millennium, felt that improved education and intelligent politics would at least start the necessary process of regeneration."" http://watch.pair.com/cnp2.html
  11. What ?! It has less to do with what is in the system (everything is in the system, if you make the "system" big enough), and more to do with the marginal change in GDP for incremental increases in debt. It eventually reaches a point where more debt does not add any more to GDP but causes a contraction. This is when you are pushing on a string. http://www.gold-eagle.com/gold_digest_08/fekete041309.html
  12. It is a fractional reserve phenomenon where fiat money and its derivatives are piled ever higher upon ever smaller reserves. A true Ponzi scheme. The bank of england ,financing war and imperialist plunder perfected and exported this ruse. It seems to have now reached its nadir, as it comes crashing down.
  13. There may be a peak on light sweet crude, but heavy sour crude resevres are probably far larger. There is a peak on the low hanging fruit. Also , exisiting supplies of all forms may have been underrated, perhaps by 50% : "Black gold might not be as scarce as we thought. This week oil prices escalated to a record $139 per barrel, but that may partly be because the amount of available oil in known reserves has been significantly underestimated. So says Richard Pike, a former oil-industry adviser and chief executive of the UK Royal Society of Chemistry, who blames flawed statistical calculations. Oil companies produce a bell-shaped probability distribution for how much each oil reservoir might hold, and then quote as an indicator of the reservoir's capacity a figure they are 90 per cent certain they can exceed. When publishing a result for multiple reservoirs, they simply add up the figures for each one. And this is where the problem lies." http://environment.newscientist.com/articl...l-reserves.html
  14. Roman Holiday, your 03:58, magnificent encapsulation ! You should issue that as a booklet for the hoardes of soap watching ,non-internet savvy, drones who will form the rump of the revolution.
  15. Good vote ! The EU is a bankers' construction to break down monetary borders in order to implement Europe wide debt and mortgage instruments. The EU zone(apart from Ireland and Spain) is an untapped mortgage market. Economies of scale can be employed to enslave those pesky renters with mortgages. Sarkozy's first order of business was to give tax breaks on mortgages and his second order was to expand working hours, presumably to get the soon-to-be-debt-slaves to work longer to repay their debt masters. The credit crunch has somewhat derailed their plans. Actually, delayed their plans. They will push on regardless of any democratic referendum. They don't do democracy. This is the New World Order. "Our democracy or nothing"
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