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Traders warn 'the worst is yet to come TODAY

Traders are warning that the 'worst is yet to come today' after the New York stock exchange suffered its biggest ever drop and £152billion was wiped off FTSE shares. The Dow shed nearly 1,200 points, or 4.4 percent, taking its losses for the week to more than 11 percent.

European and US stock markets slumped painfully again Thursday as new coronavirus infections spread outside China, exacerbating fears of a global slowdown.

Oil prices plunged by more than four percent at one point before recovering somewhat.

Daily Mail

 

When the U.S. sneezes, the rest of the world catches cold, but this time it's different.

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2 minutes ago, dragging boot straps said:

If it all gets a bit too much then global printing presses will get switched on

It'll hit the proletariat for sure but who cares about them? 

 

Since the GFC, they've never been switched off.

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2 hours ago, dragging boot straps said:

If it all gets a bit too much then global printing presses will get switched on. 

What is the use of printing if supplies chain are frozen? 

Printing works if you have an excess of offer, here the issue is that there is nothing really to buy since some components are missing.

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8 minutes ago, Freki said:

What is the use of printing if supplies chain are frozen? 

Printing works if you have an excess of offer, here the issue is that there is nothing really to buy since some components are missing.

It never works. Doesn't mean they won't do it.

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26 minutes ago, Locke said:

It never works. Doesn't mean they won't do it.

It seems to have kept the plate spinning so far, and so far is already more than ten years. So as much as I despise printing which effectively devalue work, it has been effective in preventing a great reset.

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1 minute ago, Freki said:

It seems to have kept the plate spinning so far, and so far is already more than ten years. So as much as I despise printing which effectively devalue work, it has been effective in preventing a great reset.

Delaying, not preventing.

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3 hours ago, dragging boot straps said:

If it all gets a bit too much then global printing presses will get switched on. 

It'll hit the proletariat for sure but who cares about them? 

 

Imagine that they were a real printing presses printing on real paper rather than electronic records.

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2 hours ago, starclouds said:

Gold and silver have been hammered this morning. Sounds about right. 

No they haven't. Which market are you looking at?

'Hammered' would mean falls of several hundred dollars in a day or two. Say from $1600 back to $1300.

Gold remains near 7 year highs in dollars, near all time highs in Pounds, still at all-time highs in Euro etc etc. I see nothing remotely akin to being 'hammered'.

As far as the current sell-off goes, physical gold is yet to really take part. Gold shares are another matter entirely.

Edited by Errol
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To reiterate my point - some market falls this week (thus far):

 

Apple $AAPL: -12.6%

Oil: -11.8%

Microsoft $MSFT: -11.4%

Google $GOOGL: -11.4%

Dow: -11.1%

S&P 500: -10.8%

Nasdaq: -10.6%

Amazon $AMZN: -10.1%

Facebook $FB: -9.7%

Shanghai Composite: -1.6%

Gold: -0.4%

Yen/Dollar: +1.6%

20+ Year Treasuries: +2.6% 

Edited by Errol
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3 hours ago, starclouds said:

Look at global equity markets over the last 5 years. Most are only back to where they were in late 2019. 

A month of this and then we are talking. 

Gold and silver have been hammered this morning. Sounds about right. 

 

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3 hours ago, starclouds said:

Gold and silver have been hammered this morning. Sounds about right. 

Some say there are more more paper records of these metals than there are of the physical asset.....?? How does the sale of these paper records affect the price of the physical???

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6 minutes ago, cnick said:

Some say there are more more paper records of these metals than there are of the physical asset.....?? How does the sale of these paper records affect the price of the physical???

Serious question?

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7 minutes ago, cnick said:

Yes.... lets assume it is...  :)

Hmm. A lot of people find this weird dancing quite irritating. 

Regardless, paper gold makes it appear that the supply of gold is larger than it is, suppressing the price of "gold". That works until too many people try and take delivery.

As to 

1 hour ago, cnick said:

Imagine that they were a real printing presses printing on real paper rather than electronic records.

I actually thought about this a couple of months ago. The vast majority of "cash" doesn't exist. The government has a limited capacity to create more physical notes (see Venezuela), but can pump as much digital "cash" as it likes. 

Perhaps we will actually see massive inflation in digital bank assets, which simultaneously in the "same" currency, see massive deflation in the physical notes.

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16 minutes ago, Locke said:

Hmm. A lot of people find this weird dancing quite irritating. 

Regardless, paper gold makes it appear that the supply of gold is larger than it is, suppressing the price of "gold". That works until too many people try and take delivery.

As to 

I actually thought about this a couple of months ago. The vast majority of "cash" doesn't exist. The government has a limited capacity to create more physical notes (see Venezuela), but can pump as much digital "cash" as it likes. 

Perhaps we will actually see massive inflation in digital bank assets, which simultaneously in the "same" currency, see massive deflation in the physical notes.

In the UK ... 96% of all "cash" (there are various definitions for this of course) is already digital.

The relevance of phydical currency is limited by the fact that the monies being created are so vast that if it ever was pohysical cash (or gold, for that matter) it would be physically vast - and utterly impractical.

IN terms fo "traditional" helicopter money ... the helicopters of today would be just plain too small for the job.

Besides ... not sure I would want several thousand pounds dropped on my head, thank you very much!

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  • 417 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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