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Mike Krieger On Why 2011 Is Not 2008 - Why It Is Much Worse - And On Dow-Gold Parity

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http://www.zerohedge.com/article/mike-krieger-why-2011-not-2008-why-it-much-worse-and-dow-gold-parity

This is NOT 2008

This is not 2008, it is much, much worse and far more dangerous. This will not simply be the collapse of the banking system (although I fully expect that), rather it will be the collapse of the central banking system. This will not be the temporary collapse of some phony paper wealth, it will be the permanent destruction of real wealth and the end of how the economy functions today which we can simply call “the system.” While many people think the stock market will fly up 5,000% as it did in the Zimbabwe hyperinflation I have never held this view and still do not. I do however believe that the Dow Industrials and the price of gold will trade at a 1:1 ratio. If I had to take my best guess that level will be around 5,000. That said, I may change my mind about this depending on what happens going forward but I still think that is the most likely scenario.

I have not commented on the Dow/Gold ratio for awhile but I think the time has come to do so because I anticipate a MAJOR move here over the remainder of 2011. Below is a chart of this ratio going back both eighty years years on a monthly chart and five years on a daily chart.

.....

No one expects this and even those that do are probably not positioned for it. Everyone thinks if stocks plunge gold will plunge. I think they are about to move in opposite directions and in a massive way that virtually no one will be positioned for. Only time will tell, but I think those calling for a major plunge in everything are wrongly staring at a time capsule from 2008.

Charts and more at the link.

A big call from someone I've never heard off. But he's claiming total central bank failure, that will prove interesting. Although to be honest I'd rather not live through that sort of period.

Interesting that he feels gold will go up in value if central banks fail. Not too sure on that gold might hold it's purchasing value although gold itself is a pretty useless metal.

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http://www.zerohedge.com/article/mike-krieger-why-2011-not-2008-why-it-much-worse-and-dow-gold-parity

Charts and more at the link.

A big call from someone I've never heard off. But he's claiming total central bank failure, that will prove interesting. Although to be honest I'd rather not live through that sort of period.

Interesting that he feels gold will go up in value if central banks fail. Not too sure on that gold might hold it's purchasing value although gold itself is a pretty useless metal.

Did I mention state failure?

It's obvious - at some point people will hand their worthless paper currency in and tell the taxman to stuff it.

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Did I mention state failure?

It's obvious - at some point people will hand their worthless paper currency in and tell the taxman to stuff it.

It's not worthless, paper money has other uses. Toilet paper, tinder, paper mache, using to block drafts. There's a 101 uses for money if you think about it.

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It's not worthless, paper money has other uses. Toilet paper, tinder, paper mache, using to block drafts. There's a 101 uses for money if you think about it.

Its poor as bog roll because of the slippery surface and non absorbancy.

Its poor as paper mache because of the cotton content means it doesn't bind properly.... back in the 1990s when erm... large amounts of cash were moved around sometimes it got wet. Very wet but it would always separate cleanly.

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Its poor as bog roll because of the slippery surface and non absorbancy.

Its poor as paper mache because of the cotton content means it doesn't bind properly.... back in the 1990s when erm... large amounts of cash were moved around sometimes it got wet. Very wet but it would always separate cleanly.

Origami?

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Usually with a knife and fork, although if I'm eating fruit I don't usually find I don't need utensils.

Could you please tell me how many article's I've posted today of dubious sources? I thought in the above I made it clear it was by someone I'd never heard of, hence hinting take it with a pinch of salt.

Avoiding the double negatives, you've averaged 23 posts everyday for approx. 33 months.

I'm concerned for you welfare.

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Nothing personal, but you need to go away and do something useful with your life. Posting on here 24/7 will not do you any favours - especially as you're only posting news articles from all sorts of dubious sources.

No offence, but the changes that NEED to happen in the UK, won't happen sheltered behind a keyboard. How do you eat?

Did you read the article?

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Avoiding the double negatives, you've averaged 23 posts everyday for approx. 33 months.

I'm concerned for you welfare.

Thanks for the concern, however I do find this a bit of a release otherwise I would probably go stir crazy. :) Although I might already be stir crazy. :P

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The collapse of socialism...Good luck not owning any Gold/Silver!

You've done very well not owning the 'useless metal' so far...

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Thanks for the concern, however I do find this a bit of a release otherwise I would probably go stir crazy. :) Although I might already be stir crazy. :P

I can appreciate that. Sheffield does that you.

Surprised?

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http://www.zerohedge...dow-gold-parity

Charts and more at the link.

A big call from someone I've never heard off. But he's claiming total central bank failure, that will prove interesting. Although to be honest I'd rather not live through that sort of period.

Interesting that he feels gold will go up in value if central banks fail. Not too sure on that gold might hold it's purchasing value although gold itself is a pretty useless metal.

Central banks are the largest holders of gold, after jewellery.

How can they 'fail' if the value goes up? :rolleyes:

He was born in the 80s - He's barely been through a business cycle.

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No, I typed it coz you are not in my living room, D'oh.

Are u hearing voices?

I am worried about you!

That'll be a no then!

Bung one of your charts out, gaw. All will be well. :)

To be fair, when you chip in , you have something to offer.

Schizophrenia is not a condition to be taken lightly, by the way. It's a living hell for those that suffer from it.

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Central banks are the largest holders of gold, after jewellery.

How can they 'fail' if the value goes up? :rolleyes:

He was born in the 80s - He's barely been through a business cycle.

They fail in the sense that their main product: paper fiat money loses all value

So yes, that's worthy of the word, fail, I think

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They fail in the sense that their main product: paper fiat money loses all value

So yes, that's worthy of the word, fail, I think

No its not. If the resulting main product as you put is is gold, and central banks are the main holders of gold what precisely would have changed?

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http://www.zerohedge.com/article/mike-krieger-why-2011-not-2008-why-it-much-worse-and-dow-gold-parity

Charts and more at the link.

A big call from someone I've never heard off. But he's claiming total central bank failure, that will prove interesting. Although to be honest I'd rather not live through that sort of period.

Interesting that he feels gold will go up in value if central banks fail. Not too sure on that gold might hold it's purchasing value although gold itself is a pretty useless metal.

The article doesnt make sense. Central banks are the institutions that own all of the gold. Even if gold goes up in paper terms or paper goes through the floor the system can not collapse when the central banks own all of the one asset that everyone imagines will be turned to.

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No its not. If the resulting main product as you put is is gold, and central banks are the main holders of gold what precisely would have changed?

Nobody would want their main product that earns them the big bucks producing something out of nothing and then charging us for the pleasure.

Having said that a central bank with gold cannot go bust technically . Its a moot point really.

Volker was able to raise rates once the Fed had been saved by rising gold prices in 1979 gold/mzm ratio external debt equilibrium.

We shall soon see if the Fed can get away with it again.

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No its not. If the resulting main product as you put is is gold, and central banks are the main holders of gold what precisely would have changed?

They'll have to spend their gold to function and therefore economic power will shift away from them in time.

Zee gold, she is not infinite! Which is the whole point of it.

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http://www.zerohedge.com/article/mike-krieger-why-2011-not-2008-why-it-much-worse-and-dow-gold-parity

Charts and more at the link.

A big call from someone I've never heard off. But he's claiming total central bank failure, that will prove interesting. Although to be honest I'd rather not live through that sort of period.

Interesting that he feels gold will go up in value if central banks fail. Not too sure on that gold might hold it's purchasing value although gold itself is a pretty useless metal.

So let me get this right. The WHOLE system collapses but we still have a stock market and gold trading ha ha. The man is a fool. If what he says will happen happens then we will be tins of beans and survivors mode overnight!

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How do you know?

The largest holders of it use something else instead where and when they can, and no one has flooded the market to take their power away via inflation.

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Central banks are the largest holders of gold, after jewellery.

How can they 'fail' if the value goes up? :rolleyes:

He was born in the 80s - He's barely been through a business cycle.

Much what I was thinking, the CBs are not going to fail - they can halt the game in an instant, they hold all the cards.

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Much what I was thinking, the CBs are not going to fail - they can halt the game in an instant, they hold all the cards.

They can't stop.

Market would just replace their product overnight.

It's why theres never going to be a deflation of any real size, either.

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  • 277 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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