Friday, July 29, 2011

MMMMMMMM Peanut butter

Safe havens? Gold, the yen and peanut butter

And one money manager said peanut butter

Posted by mark @ 07:46 PM (2210 views)
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6 thoughts on “MMMMMMMM Peanut butter

  • It was interesting to note Putin recently called the US a “hooligan” for flooding the world with printed dollars. I wonder what is in store for us once the debt ceiling is agreed. More money printing, I suspect. I’ll give Gold a break as much has been written already this week…. (If I were a gambler, I’d bet on the Debt Ceiling deal running till the end of next week).

    …meanwhile, US unemployment is over 9%, and set to stay high for the next several years. The economic recovery is stumbling badly. Maybe if the politicians got together on these two topics, a healthy America would emerge?

    Inflation doesn’t seem to have gone away in the UK. Its a long wait till the next ONS report (when most of us are away on holiday) August 16th, and I’m expecting more of the same! Maybe the UK starts more money printing soon? If food prices continue to rise, maybe it will be time to stock up on peanut butter, sardines, corned beef, baked beans ….etc.

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  • Call me a cynic but by the time something is regarded as an absolute proven certainty …. it’s moment has probably passed … for a while at the very least.

    Dunno about peanut butter – the smell of it triggers my gag reflex. Gold, of course, is different – well this time anyway.

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  • “You can eat Peanut Butter but you can’t eat Gold” What do you think of that? eh? eh?

    Like I said the other day I am off to Tescio to stock up on Tesco value rice pudding @ 17p per can.

    Rice Pudding

    Like my Dad said, you might as well buy it now, it is not going to get cheaper.

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  • I’ve ingested gold without any adverse effects, but that Tesco rice pudding muck is beyond the pale.

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  • It’s interesting to ponder how this great global financial mess will eventually sort itself..

    ..there does appear to be too much perceived wealth in the world, evidenced by an older generation expecting far too much of the younger – right across the developed nations..

    Those seeking ultra-safe investments are currently content to see negative real growth – an extraordinary state of affairs that has only fleetingly been seen in the past, but now seems well locked in.

    Even for those willing to take a moderate amount of risk, the choice of investments is far from inspiring.

    Gold has a simple allure, but history shows it is a fickle friend – it does no work, makes no money, and when the market finally turns, no-one will want to buy it from you. It is easily stolen, and those who offer to both sell and store it for you have a touch of the Madoff’s about them..

    As investments go, the spreads on gold are painfully high. From an historical perspective, gold now looks over-valued, and its current price will surely prompt the extraction of gold from marginal sources, increasing the volume ‘above ground’ much faster than the world’s population is growing. There may yet be a fortune to be made from gold, but it could just as easily be too late now..

    Buying into the Yen is a very foolish strategy. Japan’s export industries are under direct and deadly attack from the Chinese, where hi-tech industry is now kicking off with a vengeance. Japan is hopelessly in debt, and utterly dependant on ultra-low interest rates. Despite that, they still have a heavy budget deficit, and a shrinking and aging population.

    The economic onslaught from China will force down Japanese product prices, re-igniting their deflation nightmare and reducing their tax revenues. When the bond markets begin to lose confidence in Japan, they are likely to tail-spin into default with indecent haste.

    Japan’s politicians are a slow-moving and spineless bunch, who no longer galvanise the spirit of the nation. A Japanese sovereign default is pretty much inevitable, but the timing is hard call.

    Peanut butter – tins of beans – or rice pudding..?

    These are probably not the best things to put your money into, as they don’t quite last forever, and take up quite a lot of room, relative to their value. When the price is relatively low, buying in a lifetime’s supply of instant coffee from a Cash and Carry might make a tiny bit of sense, but only for personal consumption, and only if you have enough room in your attic to store it! A bulk deal on razor blades could also make some sense..

    I have personally put a very large sum into fine wines (mostly port) but then I also enjoy drinking them – my angle is that I have invested money I should never need – but could fall back on if necessary. However, I also have a cellar in which to store them – the cost of professional storage tends to spoil the party where wine investment is concerned.

    Overall, the best advice today is probably to keep your money relatively safe, and spread across a wide range of investments – and watch to see how the world handles the current upset!

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