Jump to content
House Price Crash Forum

Lurker at the pleasuredome

  • Posts

  • Joined

  • Last visited

About Lurker at the pleasuredome

  • Rank

Contact Methods

  • Website URL
  • ICQ

Profile Information

  • About Me
    Looking forward to being there when the whole stinking system collapses.
  1. Inflation is what happens when you try to get nine slices from an eight slice pizza.
  2. Careful, you might be arrested for being a price stability denier. We are lucky inflation is still low, otherwise we couldn't afford all these price rises.
  3. You have to understand the meaning of the answer lies in the mechanics of fractional banking system where the debts of one person become the deposits of a second. The deposit of the second can then be counted on to be lent against in a fractional scheme. They have it all worked out (so they tell us). Under this system debts can be resolved in three ways. 1 Loan are repaid. Thats fair but its not happening. 2 Defaults - the banks lose. (We cant have that can we?) 3 Inflation of the money supply so that the system can continue and loans are repaid with devalued money. In the 30s the money was fixed to gold and could not be expanded, the fractional scheme imploded resulting in 1000s of banks going under. So the winner is 3. Inflate or die. Now as credit has expanded creating a housing bubble how much inflation will be required to keep the scheme going? This is why gold is going up.
  4. Im not exactly charging into a bubble and being lucky. Many books, I estimate millions of share prices charts, years of making observations to try to gain an understanding of whats really going on. But speaking of bubbles gold stocks could well form one. The xau completed a massive base by "jumping a creek" from 115 to 130 which will be major support during any pullback. This is equivalent to the stock market in Jan 86. And we know what happened after that. A bubble in gold stocks is very likely to form here. Look to the crash of 87 for the shape of things to come.
  5. Im a Kitco poster. For six years I have been following the discussions and reading the linked sites. Ive almost doubled my net worth in the last six months after tax and dont intend working again. Should I give the money back?
  6. Hang in there. Im short from 2.75. Been shorting all the way up. Some of you just dont have what it takes.
  7. You have to look past the price. Gold going from $300 to $500 at the time did not go through any significant levels so the move meant nothing. Long term interest rates had come down from 14% in 84 to half that in 86. They spiked up to 10% in 87. So there may have been fears of inflation returning but they were misplaced. So gold was not in position to go up. People who bought gold at that time were just plain wrong. Gold stocks have only very recently completed a major basing formation and are in position to go up. At this point gold stocks will go up as the rest of the market goes down.
  8. Gold was in a long term bear market at that time. Gold stocks had gone up in 87 in a bear market rally. The crash of 87 was a technical correction to non-gold stocks during a long term non-gold stock market bull market. During gold bull markets of the early30s and 70s gold stocks went the inverse of the stock market declines.
  9. Im getting the impression the UK economy is falling apart and in position to fall more. Is it just this site or is that a reasonable view to take?
  10. You need staying power to go short like this. And keep topping up the margin account. Try turning the chart upside down.
  11. Ludwig von Mises Institute Mises in One Lesson America's Great Depression A discussion of a crash should look at the causes of the bubble. Manipulation of the money supply by the government and central banks is always to blame.
  12. That's like asking can freedom serve humanity better than serfdom? It depends on your position in the welfare state. Gold and Economic Freedom By ALAN GREENSPAN An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of laissez-faire-that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. .... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. Gold and Economic Freedom by Alan Greenspan
  13. Will the market move from extreme to extreme? http://www.financialsense.com/fsu/editorials/2006/0117.html
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.