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Fiat Money Will Die 2011!

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Good post, pretty self explanitory to most posts on here have revolved around this outcome.

An anecdote, my old landlord form 15 years back, sat in a pub over the weekend, he has liquidated evrything he owns. He is late forties, has £500k in the bank, not sure what to do?

I said spend it, enjoy it...He said gold, equities,.................i said no, remain liquid, gold not for me, stay in cash, spend, enjoy, because you will be able to buy your olf property portfollio back in five years for what you have left after five years of spending 30% of you £500k. He said ok, i am off to the Far East for some naughties..................I winked said enjoy watching from afar!!!!!!!!!!!

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In what way will this affect me? Sorry for being blunt, but will it in any way affect my life? If the answer is yes - all the wealth of knowledge employed by all of the revered financial services, whose job it is is to keep the plates spinning no matter what, cannot prevent ??? from happening, and it will affect you and me in some dramatic way as to throw us out of our bland existances in some way - then I'd like to have a heads up. In other words - bovvered? :P

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Good post, pretty self explanitory to most posts on here have revolved around this outcome.

An anecdote, my old landlord form 15 years back, sat in a pub over the weekend, he has liquidated evrything he owns. He is late forties, has £500k in the bank, not sure what to do?

I said spend it, enjoy it...He said gold, equities,.................i said no, remain liquid, gold not for me, stay in cash, spend, enjoy, because you will be able to buy your olf property portfollio back in five years for what you have left after five years of spending 30% of you £500k.

Wouldn't be so sure of that, might well lose the lot if he doesn't put a chunk in gold.

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Wouldn't be so sure of that, might well lose the lot if he doesn't put a chunk in gold.

Oky Doky you havr your Gold moment, me no way, but we can agree to disagree, but i am sick of Gold or nowt, i will still with my paper worthless cr@p that they print but we use to putchase essentials? Gold to the moon, buy now, like friggin houses back in 2007!

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http://www.marketoracle.co.uk/Article22354.html

FED Shell game will end then.

Mike

From the article:

That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin.

Then:

The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.

HAHAHA! In what way does 'growth is less vigorous than we expected' = 'the global economy will go into a tailspin' ?

Seriously, marketoracle is nothing more than some guy's blog. It's all hyperbole and gold ramping. I wouldn't dismiss what Nadeem Walayat has to say out of hand but the evidence so far (no collapse of currencies, no collapse of society - things that he predicted would have happened long since now) suggests that he is on the hysterical side of forecasting.

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Saw some electrical white goods cut in price almost by half today. It's very very good and I'm persuaded to buy even if they might, in due course, fall further in price.

These aren't normal times by any means.

(and I'll bet that for sure they're still making a healthy profit even at the reduced price)

Edited by billybong

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http://www.marketoracle.co.uk/Article22354.html

FED Shell game will end then.

Mike

maybe

noone knows when the moment will arrive - even if they think they do and even if they think they are in charge

link

One day—when nothing much is going on in the markets, but general nervousness is running like a low-grade fever (as has been the case for a while now)—there will be a commodities burp: A slight but sudden rise in the price of a necessary commodity, such as oil.

This will jiggle Treasury yields, as asset managers will reduce their Treasury allocations, and go into the pressured commodity, in order to catch a profit. (Actually it won’t even be the asset managers—it will be their programmed trades.) These asset managers will sell Treasuries because, effectively, it’s become the principal asset they have to sell.

It won’t be the volume of the sell-off that will pique Bernanke and the drones at the Fed—it will be the timing. It’ll happen right before a largish Treasury auction. So Bernanke and the Fed will buy Treasuries, in an effort to counteract the sell-off and maintain low yields—they want to maintain low yields in order to discourage deflation. But they’ll also want to keep the Treasury cheaply funded. QE-lite has already set the stage for direct Fed buys of Treasuries. The world didn’t end. So the Fed will feel confident as it moves forward and nips this Treasury yield jiggle in the bud.

The Fed’s buying of Treasuries will occur in such a way that it will encourage asset managers to dump even more Treasuries into the Fed’s waiting arms. This dumping of Treasuries won’t be out of fear, at least not initially. Most likely, in the first 15 minutes or so of this event, the sell-off in Treasuries will be orderly, and carried out with the idea (at the time) of picking up those selfsame Treasuries a bit cheaper down the line.

However, the Fed will interpret this sell-off as a run on Treasuries. The Fed is already attuned to the bond markets’ fear that there’s a “Treasury bubble”. So the Fed will open its liquidity windows, and buy up every Treasury in sight, precisely so as to maintain “asset price stability” and “calm the markets”.

The Too Big To Fail banks will play a crucial part in this game. See, the problem with the American Zombies is, they weren’t nationalized. They got the best bits of nationalization—total liquidity, suspension of accounting and regulatory rules—but they still get to act under their own volition, and in their own best interest. Hence their obscene bonuses, paid out in the teeth of their practical bankruptcy. Hence their lack of lending into the weakened economy. Hence their hoarding of bailout monies, and predatory business practices. They’ve understood that, to get that sweet bail-out money (and those yummy bonuses), they have had to play the Fed’s game and buy up Treasuries, and thereby help disguise the monetization of the fiscal debt that has been going on since the Fed began purchasing the toxic assets from their balance sheets in 2008.

But they don’t have to do what the Fed tells them, much less what the Treasury tells them. Since they weren’t really nationalized, they’re not under anyone’s thumb. They can do as they please—and they have boatloads of Treasuries on their balance sheets.

So the TBTF banks, on seeing this run on Treasuries, will add to the panic by acting in their own best interests: They will be among the first to step off Treasuries. They will be the bleeding edge of the wave.

Here the panic phase of the event begins: Asset managers—on seeing this massive Fed buy of Treasuries, and the American Zombies selling Treasuries, all of this happening within days of a largish Treasury auction—will dump their own Treasuries en masse. They will be aware how precarious the U.S. economy is, how over-indebted the government is, how U.S. Treasuries look a lot like Greek debt. They’re not stupid: Everyone is aware of the idea of a “Treasury bubble” making the rounds. A lot of people—myself included—think that the Fed, the Treasury and the American Zombies are colluding in a triangular trade in Treasury bonds, carrying out a de facto Stealth Monetization: The Treasury issues the debt to finance fiscal spending, the TBTF banks buy them, with money provided to them by the Fed.

Whether it’s true or not is actually beside the point—there is the widespread perception that that is what’s going on. In a panic, widespread perception is your trading strategy.

So when the Fed begins buying Treasuries full-blast to prop up their prices, these asset managers will all decide, “Time to get out of Dodge—now.”

Note how it will not be China or Japan who all of a sudden decide to get out of Treasuries—those two countries will actually be left holding the bag. Rather, it will be American and (depending on the time of day when the event happens) European asset managers who get out of Treasuries first. It will be a flash panic—much like the flash-crash of last May. The events I describe above will happen in a very short span of time—less than an hour, probably. But unlike the event in May, there will be no rebound.

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I'm just sick of teenage scribbler sheep worriers. Most of these commentators make a little knowledge go an awful long way. Yes we are in the crap, yes there will be econmic turmoil for a good few years, and yes, house prices are going to fall substantially. But this end of the world stuff - especially the above article which is full of falsehoods, ridiculous suppositions and unlikely synchronicity, really has little cred.

Like a most here, I read the last 3 years pretty well in the face of aggressive bull mongerers, and am still extremely cautious. But listen, the money system as you and I currently know it is not going anywhere, and the banking system, which will see more casualties, will pretty much stay the same as it is.

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I'm just sick of teenage scribbler sheep worriers. Most of these commentators make a little knowledge go an awful long way. Yes we are in the crap, yes there will be econmic turmoil for a good few years, and yes, house prices are going to fall substantially. But this end of the world stuff - especially the above article which is full of falsehoods, ridiculous suppositions and unlikely synchronicity, really has little cred.

Like a most here, I read the last 3 years pretty well in the face of aggressive bull mongerers, and am still extremely cautious. But listen, the money system as you and I currently know it is not going anywhere, and the banking system, which will see more casualties, will pretty much stay the same as it is.

yeah

whats the average lifespan of paper money again

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......look, believe and do what you want. However dont miss out on life while your waiting for armageddon. Anyway, I'll have a tenner with you that time next year.....oh, wait...

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The Daily Bell develops this article. Selected excerpt below:

Bank Run 2011?

The long-term view would hold that this unraveling actually began with the creation of the American Federal Reserve in 1913. Alternatively, you could argue that the starting point of the current system began after World War II with Bretton Woods when the dollar was effectively declared the world's reserve currency. You could peg it around the time Richard Nixon refused to honor gold convertibility. Finally, you could argue the current system's unraveling began with the bull market of the early 1980s.

Ultimately, it is immaterial exactly when it began – though the longest view is perhaps that the late 2000s marks the end not just of the dollar's supremacy but of the effectiveness of central banking itself. We pointed out over a year ago that the Federal Reserve was leaking credibility; the bailouts were inconveniently deployed in the Internet era, not reported on just by the Fed-biased mainstream media.

The result was swelling indignation that is depriving the Fed (and other central banks) of moral authority. Those at the Fed and at central banks generally still do not understand what has happened. They believe if they can just restimulate the economy with more fiat money that everybody in the US, and throughout the West will forget about the crisis and it will be back to business as usual.

It won't be though, in our opinion. Just as with the Gutenberg press, the modern era's communication revolution has punctured the power elite's promotional mechanisms. We see this most obviously on the Internet. What the power elite has lost, especially, is the hold it had previously over a portion of the intelligentsia and the young.

http://www.thedailybell.com/1341/Bank-Run-2011.html

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HPC.com/Goldpricetothemoon.biz, it seems to be of recent.

Its a 1 on 1 fight, paper and ink V gold.

I know whos winning hands down during the past 10 years, question is though how long will the trend go on?

answers on the back of a fag packet please.

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Guest spp

Wouldn't be so sure of that, might well lose the lot if he doesn't put a chunk in gold.

100% in pure paper, you know it makes sense! :lol:

"Its a 1 on 1 fight, paper and ink V gold"

Or perhaps a whole new monetary media will come from behind (so to speak).

That will put the cat among the pigeons.

With Gold having Silver in its corner!

Edited by spp

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Oky Doky you havr your Gold moment, me no way, but we can agree to disagree, but i am sick of Gold or nowt, i will still with my paper worthless cr@p that they print but we use to putchase essentials? Gold to the moon, buy now, like friggin houses back in 2007!

I happen to favour metals aswell but am not blind to possibilities and have no blinkered fetish for it.

All cash may not be the worst decision ever, who knows, but feck me, all sterling would keep me awake at night.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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