narco

A reduction in future lending isn't deflationary though. They will still be increasing the money supply albeit at a lower rate.

You have the dollar as toilet paper as your avatar. What currency do you have a penchant for?

The public are starting to take notice. A work colleague was talking about his parents digging out their gold valuables. It seems they are considering offloading them whilst the price is high. Clearly they are not very imformed.

I personally think we should all be aware of both possibilities and have insurance for both. I'm certainly looking to clear off all debt as quickly as possible now i've accumulated a voume of gold and silver. Logic would suggest deflation as the outcome but we live in an extremely corrupt world where money literally does grow on trees.

I prefer this data set http://www.shadowstats.com/alternate_data

That certainly is the thinking over at financialsense. Check out the 3rd hour audio. http://www.financialsense.com/fsn/main.html 2008 is apparently just the inflationary recession.

The US is awash with cash. Look at the money supply data, even since august 2007. *edit* hmm was beaten to it

The issue is that the money was mostly created out of thin air to start with. They debt becomes monetized at the point when the asset is sold, even if it is at a significantly reduced amount. The lending bank still receive a significant injection to their cash reserves that they never had to start with.

The destruction of the debt is when it is paid back. The sale of the asset via foreclosure is one of the most inflationary forces imaginable.

I guess you must be feeling sad recently as a buy to let sterling holder.

Very true. The central banks thought they had cracked the boom / bust cycle with a perpetual housing boom where relatively small amounts of money would find their way into wider economy via housing mew. The bulk of this almighty money supply growth is still bottled up in housing assets. As these assets deflate, we will see the monetization of debt through various means that will spread like wildfire into other areas. Just listen to James Turk talk about a high inflationary situation spiraling out of control even with negative money supply growth.

maybe you haven't looked at the various discussions already based on the differences, some that are even cultural and moral. http://www.321gold.com/editorials/russell/russell010108.html Question -- That's right, Russell, the central banks can make the money available, but frightened, debt-laden people don't have to borrow, and they don't have to spend. The Fed could be pushing on a string. Answer -- Well that's the theory, and that is the worry. But it doesn't work that way, not in the real world. Make the money available, make it plentiful -- and the American public will spend it. Ever since World War II, whenever the money was available, America's consumers spent it. They not only spent it, they went into debt, thereby spending even more than they had coming in.

Is there something you guys aren't understanding here or what? We DONT live in the real world, we live in a world where the rules are broken. The powers that be are able to decieve and manipulate and are armed with the ability to create new money out of thin air. In order to combat DEFLATION the powers that be will use all INFLATIONARY measures as they always have done. Just because this is the biggest credit collapse time, it doesn't mean they cannot use the same INFLATIONARY techniques they've been using for the last 50 years. They will just do it on a much grander scale!

So the key question is, who are the holders of said imploded bonds?

£442.75 More records broken?

An excellent article. One to read if you're feeling a little unsure why people are moving into gold and precious metals. http://www.321gold.com/editorials/field/field010808.html

We had $876 for a moment already.

£875.64

Nice spike to $873 so far this morning. Could it be related to this? http://www.bloomberg.com/apps/news?pid=206...&refer=home

Silver is a no brainer whilst its still hobbling along at over 70% away from it's all time high. Once the really big money moves into PMs, i think we will see the most spectacular silver spike imaginable. The blow off could be just as impressive so timing will be critical, especially for physical holders.

Why is nobody talking about inflation??? We have seen extortionate increases in money supply leading to a long term devaluation of the currency. Of course prices of limited resources are going to rise! NOBODY is talking about the real cause of these increases. Why not cut just some more interest rates.

Same time, same smackdown. :angry: :angry: :angry:

Forget it. Try www.coininvestdirect.com

He doesn't really explain how stealth bail out funds can find their way in via the federal home loan banks. http://www.mises.org/story/2772

Silver is still priced at bargain basement prices imo. I think it has more legs than gold but the timing of course is crucial. I added a little extra to my stash this weekend, pending delivery.