Gold - The RWNJ currency

[Captain Oates 910]

Actually Alan, gold shot up by about $100 an ounce after you started this thread. Anyone who ran out and sold their gold after your first post would have lost money. I'm a little curious as to why you only bump it when gold starts falling.

Absolutely not so -- the gold ETF GLD peaked at $185.85 in mid August and fell sharply after that

Hope that answers your incorrect assertion

If you want to know correct figures, I have them at hand

[Captain Oates 910]

Assuming we only run surpluses or at least minimal deficits we can do this simple plan:

Daily payment on the debt = $1 billion

$365 billion a year

$3.65 trillion in 10 years.

So assuming we don't run any more deficits and stick to this plan we can actually pay off our current $15 trillion debt in about 40 years!

Seems like a lot of folks are trying to have it both ways

A They are saying the dollar will be worthless and there will be inflation

BUT they also say

B we will never pay the debt off (the debt is denominated in old money at a fixed interest rate)

These two statements are contradictory

If the currency is lower in value, then its easier to pay off, as taxes will be higher on inflated incomes (the top 1% for a start)

That is why government monetize debt

One of the BEST hedges against inflation are stocks

Have you noticed how businesses raise their prices with inflation - well so does their bottom line and dividends

Don't buy gold, buy stocks

Anyone who thinks that now is a good buying time for gold - I will be reminding you of your statements in the next few days

Brace yourselves for more whuppin !

[Captain Oates 910]

Please see attached chart for GLD gold

Never again try to snow me with invented statistics or incorrect statements about the timing of peaks

Edited December 14, 2011 by Ashud Cocoa

[Dakine10 5,452]

Absolutely not so -- the gold ETF GLD peaked at $185.85 in mid August and fell sharply after that

Hope that answers your incorrect assertion

If you want to know correct figures, I have them at hand

I'm talking about physical gold. You know, the "RWNJ" currency you started the thread about. I posted the graph already. Gold peaked at $1785 an ounce on Nov 30, a few days after you started the thread.

[Dakine10 5,452]

Please see attached chart for GLD gold

Never again try to snow me with invented statistics or incorrect statements about the timing of peaks

Nice, but it has nothing to do with your topic. I doubt that Glenn Beck is telling anyone to buy ETF's. If he did, he's crazier than we already thought he was, which would be quite a feat in itself.

[mawilson 2,133]

Anyone who thinks that now is a good buying time for gold - I will be reminding you of your statements in the next few days

Brace yourselves for more whuppin !

I will take that bet, Alan.

[mawilson 2,133]

The "sudden" drop is not a mystery.

It's a combination of

1) profit taking ahead of the end of the year (for instance, John Paulson's hedge fund sold a third of its $4.6bn position in SPDR Gold Shares in the third quarter)

2) dollar liquidity crunch - European banks lending gold out in exchange for much-needed dollars

3) weak demand from India - the largest buyer of physical gold

By the end of next year, gold will be back at $1,900-2,000.

[Captain Oates 910]

I'm talking about physical gold. You know, the "RWNJ" currency you started the thread about. I posted the graph already. Gold peaked at $1785 an ounce on Nov 30, a few days after you started the thread.

oh Physical gold - sorry your statistics are still wrong

Physical gold chart link is here - I didn't spoof it - its a fact

The double top was September - ish. Would you please confirm you were wrong in saying gold went up after I started my thread ?

Physical gold chart

Edited December 15, 2011 by Ashud Cocoa

[mawilson 2,133]

A They are saying the dollar will be worthless and there will be inflation

BUT they also say

B we will never pay the debt off (the debt is denominated in old money at a fixed interest rate)

These two statements are contradictory

You don't have to have it both ways. Gold works either way.

A = the debt will be monetized, there will be inflation and gold is a good inflation hedge (so are stocks)

B = the US goes bankrupt and collapses, Soviet-Union style. Individual states (New York, New Jersey, California) declare independence and introduce their own currencies. (Just like Belarus, Ukraine, Moldova, Uzbekistan and other Soviet republics). US dollars and dollar denominated assets become worthless. Gold rules supreme.

[Captain Oates 910]

The "sudden" drop is not a mystery.

It's a combination of

1) profit taking ahead of the end of the year (for instance, John Paulson's hedge fund sold a third of its $4.6bn position in SPDR Gold Shares in the third quarter)

2) dollar liquidity crunch - European banks lending gold out in exchange for much-needed dollars

3) weak demand from India - the largest buyer of physical gold

By the end of next year, gold will be back at $1,900-2,000.

I prefer to rely on public facts describing what has happened since I made my prediction, rather than claim I am right about something in the future that hasn't happened

There have been many predictions that the world would end - I said they were all rubbish. I was 100% right, but of course the doom mongers are right about the next extinction date and I am wrong

[mawilson 2,133]

There have been many predictions that the world would end - I said they were all rubbish. I was 100% right, but of course the doom mongers are right about the next extinction date and I am wrong

Did the Soviet Union not collapse? It was a superpower with nuclear weapons and space technology. In the end, it collapsed due to its spiraling out of control debt.

[Captain Oates 910]

You don't have to have it both ways. Gold works either way.

A = the debt will be monetized, there will be inflation and gold is a good inflation hedge (so are stocks)

B = the US goes bankrupt and collapses, Soviet-Union style. Individual states (New York, New Jersey, California) declare independence and introduce their own currencies. (Just like Belarus, Ukraine, Moldova, Uzbekistan and other Soviet republics). US dollars and dollar denominated assets become worthless. Gold rules supreme.

B above is a good indication as to the accuracy of A above

Gold is a perception and nothing more. Perceptions are fragile.

McDonald's stock in contrast, is an earning asset

I am content to say that Warren Buffet and I think exactly the same on this matter of gold so I am not a lone voice in the wilderness.

I thought RWNJ's were in awe of successful investors, but that stops when the most successful investor in American history is a Democrat like Buffet - then they resort to twisting and distorting the charts to sell to their credulous followers who swallow the dogma and the cliches

[mawilson 2,133]

I prefer to rely on public facts describing what has happened since I made my prediction, rather than claim I am right about something in the future that hasn't happened

There have been many predictions that the world would end - I said they were all rubbish. I was 100% right, but of course the doom mongers are right about the next extinction date and I am wrong

The world will not collapse by the end of next year, but gold will go back to its fundamentals (which are estimated to be in the high $1900s)

[Dakine10 5,452]

oh Physical gold - sorry your statistics are still wrong

Physical gold chart link is here - I didn't spoof it - its a fact

The double top was September - ish. Would you please confirm you were wrong in saying gold went up after I started my thread ?

Physical gold chart

You started the thread on Nov 21st. I said gold went up a few days after you started the thread. Here's the 30d chart again for your convenience. You misinterpreted something I said. It happens. I have already accepted your apology. Lets move on, shall we?

[mawilson 2,133]

B above is a good indication as to the accuracy of A above

People tend to get pissed off when governments debase their currencies and savings. They start rioting, kill each other, and overthrow the government.

It's happened before in other countries. Look it up.

It wouldn't be long before Californians realized that they could be the wealthiest nation on earth if they didn't have to fork over 30 percent of their income to the Federal government. When that happens, buh bye Washington.