Throwing money at Treasuries isn't the answer

joyboytoy79

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For the record; I'm a social liberal and fiscal conservative. However, I am a registered Republican mostly because I am against gov't expansion.

Hmmm... Against government expansion. Hmmmm... Seems odd that you'd register republican if you're against government expansion. Let's consider a few facts:

1. the biggest expansion of government under a president: George W. Bush, who tripled the federal government.

2. The second biggest expansion of government under a president: George H. W. Bush when he passed the ADA.

3. The third biggest expansion of government: Ronald Regan when he went hog wild with 'star wars'

Did you hold protests for these guys? Or was it OK cuz they were spending big bucks and expanding the government programs in more socially conservative ways?
 
D

deleted15807

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i fully expect inflation to go nuts in the near future. hold onto your asses we're in for a bumpy ride.

Inflation is better than deflation. There are tools to fight inflation but nothing to fight deflation.


Economists now fear deflation more than inflation
"It is time to worry about inflation, or more precisely, the lack of inflation," a Merrill Lynch economist, David Rosenberg, wrote in a recent note to clients.
star,

At the end of 2008 (a few months ago), you were supporting governmental bailouts of banks and A.I.G.

Now, you're hobnobbing with Palin supporters and Obama-bashers and Jesus freaks (with homemade signs) at Tea Parties in downtown Cincinnati.

Your journey continues...


The sad fuck neo cons consistently rewrite history to suit the latest propaganda. That should be no surprise there.
 
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B_starinvestor

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Hmmm... Against government expansion. Hmmmm... Seems odd that you'd register republican if you're against government expansion. Let's consider a few facts:

1. the biggest expansion of government under a president: George W. Bush, who tripled the federal government.

2. The second biggest expansion of government under a president: George H. W. Bush when he passed the ADA.

3. The third biggest expansion of government: Ronald Regan when he went hog wild with 'star wars'

Did you hold protests for these guys? Or was it OK cuz they were spending big bucks and expanding the government programs in more socially conservative ways?

Can you cite any of those claims?

I'm about ready to send you to school on all three.

But I'd like some verification before I expend the energy.
 

joyboytoy79

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Can you cite any of those claims?

I'm about ready to send you to school on all three.

But I'd like some verification before I expend the energy.

Just some junk I pulled off of some liberal media news source. I'm sure none of it is fact based.

Please, school me. I'm a lousy pupil. But that shouldn't stop you from trying.
 

lucky8

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i fully expect inflation to go nuts in the near future. hold onto your asses we're in for a bumpy ride.


Well as of now, bond traders aren't really predicting inflation anytime soon, so I wouldn't worry too much yet...that's a couple years down the road
 

B_starinvestor

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Can you cite any of those claims?

I'm about ready to send you to school on all three.

But I'd like some verification before I expend the energy.

OK. Let's start with #3. Reagan went 'hog wild' with 'star wars.'

You are 29, so you were about a foot long when Reagan took office? Well, 'Star Wars' was a media-coined term for SDI [Strategic Defense Initiative] which was a space-based defense system that was established to defend the U.S. from nuclear missiles.

As your liberal professors and peers won't tell you, anti ballistic missiles were actually being developed as a measure to deter nuclear attacks...in other words - our message was, if you attack us with nuclear missiles, we will deflect and destroy the missiles, and then destroy you.

Contrary to popular belief, 'Star Wars' wasn't a stockpiling of attack weapons for the U.S. to flex its proverbial military muscle.

While you were tuning into the Flintstones and The Three Stooges and pooping your pants, the rest of the world was living daily under the potential threat of nuclear annihilation.

Reagan's development of SDI was framed under three principles which would protect U.S. security interests from [particularly Soviet] nuclear threats:


  1. Absolute refusal of the U.S. to be vulnerable to attack
  2. Operating from a position of strength in achieving national security
  3. Understanding that U.S. security during the proliferation of nuclear weapons was reliant upon controlling space militarily.
Aside from extricating us from a decade-long recession plagued by sky-high inflation, oil prices, interest rates, unemployment, hostages in Iran and a sputtering stock market, Reagan crippled and discarded our greatest and most dangerous threat in U.S. history through strategic and military brilliance...all the while creating the strongest economic and capitalist expansion since the roaring 20's.

Throwing around thoughtless phrases like 'hog wild with star wars' in reference to the handling of, arguably, one of the greatest threats to the U.S. in history, is...eh, Stooge-like.
 
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B_starinvestor

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B_Nick4444

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LONDON, March 20 (Reuters) - Barclays Capital (BARC.L) lifted its gold price forecast for 2009 to $940 an ounce from $920, citing the prospect of a weaker dollar and fears about inflation, it said on Friday.

Gold has risen sharply since the Federal Reserve announced it would buy $300 billion in longer-dated Treasures on Wednesday, as fears over dollar weakness and rising inflation boosted prices. [GOL/] [ID:nN18343369]


UPDATE 1-Barclays lifts 2009 gold price view to $940/oz | Industries | Financial Services & Real Estate | Reuters
 
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deleted15807

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And in TODAY's news......

Gold Falls in New York as Dollar Rebounds; Silver Advances


By Pham-Duy Nguyen

March 20 (Bloomberg) -- Gold fell after the dollar rebounded, eroding the appeal of the precious metal as an alternative investment. Silver advanced.

The dollar rose for the first time in nine sessions against a weighted basket of six major currencies. Gold and the dollar, which have moved in tandem for most of this year, may return to an inverse correlation as the Federal Reserve expands purchases of debt.
 
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2322

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to drop mortgage rates. Writing a $300 billion check to buy Treasuries...

Fed in Bond-Buying Binge to Spur Growth - WSJ.com

In theory, driving up prices on T-bonds will drop t-bond rates, which in turn, pushes mortgage rates down.

It won't work this time around because non-depository lenders simply don't have enough warehouse credit available to lend anyway. Betcha mortgage rates barely even move.

Spend, baby, spend!

:rolleyes:

This is really getting frustrating.

You're very right about this. Remember when Greenspan left and he said, "Après moi, le déluge?" He knew what was coming and Helicopter Ben had already declared that the only way to combat deflation was (hyper)inflation (citing helicopter drops of bales of scrip if needed).

Still time to buy gold and, if you really have balls, silver. They're the only true hedge against inflation.
 

Flashy

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And in TODAY's news......

Gold Falls in New York as Dollar Rebounds; Silver Advances


By Pham-Duy Nguyen

March 20 (Bloomberg) -- Gold fell after the dollar rebounded, eroding the appeal of the precious metal as an alternative investment. Silver advanced.

The dollar rose for the first time in nine sessions against a weighted basket of six major currencies. Gold and the dollar, which have moved in tandem for most of this year, may return to an inverse correlation as the Federal Reserve expands purchases of debt.


yeah...gold fell .0057% today or so :rolleyes:

after surging all week on fears about the weaker dollar...

you are an idiot.

it was at $882 an ounce on wednesday...i know because i bought futures on that day at $886. when the fed made its debt buying announcement gold went up $60 an ounce

it went up roughly 10% in just two days, it was at a high of $967 today when people began selling off and taking profits

the light fall was profit taking as everyone sold...including myself.

so don't pat yourself on the back
 

Flashy

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Still time to buy gold and, if you really have balls, silver. They're the only true hedge against inflation.

I don't really now how much "time" you have. you have missed most of the major price moves, but my friends on the NYMEX who i used to work with are all pretty bullish, and justifiably so.

If gold breaks through $1,000 again soon, it has alot of upside...

but from my experiences with gold, which i still actively trade even though i am mainly an equities trader, it is too risky to trade without having a healthy amount of options on the other side of your play, and constantly trading and updating those options, because when it moves, it movesd quickly and violently, and you can lose ugly when it whipsaws.

Of all the products i have traded, Gold is close to the top in terms of difficulty, only for how wildly the price swings are...that and the index futures and options.

i would definitely buy gold if you are a long term buyer, but you better have some puts for safety.
 
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I don't really now how much "time" you have. you have missed most of the major price moves, but my friends on the NYMEX who i used to work with are all pretty bullish, and justifiably so.

If gold breaks through $1,000 again soon, it has alot of upside...

but from my experiences with gold, which i still actively trade even though i am mainly an equities trader, it is too risky to trade without having a healthy amount of options on the other side of your play, and constantly trading and updating those options, because when it moves, it movesd quickly and violently, and you can lose ugly when it whipsaws.

Of all the products i have traded, Gold is close to the top in terms of difficulty, only for how wildly the price swings are...that and the index futures and options.

i would definitely buy gold if you are a long term buyer, but you better have some puts for safety.

Before I became technically broke, I did very well with gold. I found I have a very high tolerance for fluctuation. I basically decided we were in one huge bubble, saw the historic flows of capital in a bubble, listened to a handful of very experienced goldbugs, bought a bunch of juniors (yes, I'm insane) did what they told me no matter how counterintuitive it seemed, and I didn't need to work for three years. I'm out of gold completely but not out of silver. If you think gold is a bizarre ride, silver is even worse because it only becomes a precious metal (for trading purposes) when gold reacts to inflation such that it becomes a broadly-traded commodity. The number of true goldbugs is very small and they are certainly an eclectic bunch, but one thing is for certain, they know how to trade gold and silver.

I agree that gold has yet another spike ahead and the Fed's latest move to buy back T-bills only widens the window of opprotunity for a spectacular run-up. You literally have to sit and watch it when the spikes occur, but providing you do so diligently (and that means setting your PC to wake you in the night if necessary), the profits can be spectacular (as can the losses). I'm betting that silver will take a run with gold when that run-up happens. Once the American population grasps (or remembers) what real inflation is, we'll be seeing the long lines outside the gold traders just like in the early 80s.
 

Flashy

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Before I became technically broke, I did very well with gold. I found I have a very high tolerance for fluctuation. I basically decided we were in one huge bubble, saw the historic flows of capital in a bubble, listened to a handful of very experienced goldbugs, bought a bunch of juniors (yes, I'm insane) did what they told me no matter how counterintuitive it seemed, and I didn't need to work for three years. I'm out of gold completely but not out of silver. If you think gold is a bizarre ride, silver is even worse because it only becomes a precious metal (for trading purposes) when gold reacts to inflation such that it becomes a broadly-traded commodity. The number of true goldbugs is very small and they are certainly an eclectic bunch, but one thing is for certain, they know how to trade gold and silver.

I agree that gold has yet another spike ahead and the Fed's latest move to buy back T-bills only widens the window of opprotunity for a spectacular run-up. You literally have to sit and watch it when the spikes occur, but providing you do so diligently (and that means setting your PC to wake you in the night if necessary), the profits can be spectacular (as can the losses). I'm betting that silver will take a run with gold when that run-up happens. Once the American population grasps (or remembers) what real inflation is, we'll be seeing the long lines outside the gold traders just like in the early 80s.

I couldn't agree more.

i still trade gold, but not as actively as i used to when i was on the floor of the exchanges...i was younger and had much more daring in me than today :wink:

i have to say, i am a goldbug myself...i love gold...there is something so alluring about...always has been. I was given a 1 ounce bar for my bar mitzvah, and that was it..i was sort of hooked on it...

i must say, i am a gold squirrel...i have dozens of coins, bars and wafers hidden away for the day when the world goes to shit :wink:

p.s. please do not remind me of the night time alarms...between my former currency and gold forays, sometimes i still wake in the night and yell "Sell"!! lol
 

B_starinvestor

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Before I became technically broke, I did very well with gold. I found I have a very high tolerance for fluctuation. I basically decided we were in one huge bubble, saw the historic flows of capital in a bubble, listened to a handful of very experienced goldbugs, bought a bunch of juniors (yes, I'm insane) did what they told me no matter how counterintuitive it seemed, and I didn't need to work for three years. I'm out of gold completely but not out of silver. If you think gold is a bizarre ride, silver is even worse because it only becomes a precious metal (for trading purposes) when gold reacts to inflation such that it becomes a broadly-traded commodity. The number of true goldbugs is very small and they are certainly an eclectic bunch, but one thing is for certain, they know how to trade gold and silver.

I agree that gold has yet another spike ahead and the Fed's latest move to buy back T-bills only widens the window of opprotunity for a spectacular run-up. You literally have to sit and watch it when the spikes occur, but providing you do so diligently (and that means setting your PC to wake you in the night if necessary), the profits can be spectacular (as can the losses). I'm betting that silver will take a run with gold when that run-up happens. Once the American population grasps (or remembers) what real inflation is, we'll be seeing the long lines outside the gold traders just like in the early 80s.

1981 to 2001 gold returned -70%. 20 years, minus 70%. Zzzzzzzz.
 

pym

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yes but it has done rather well in the last few years

me love gold. :biggrin1:
Me too. I have 12 Ozs. in my safety deposit box that i bought @ 270 an Oz. in 97'. I wish now that all the money i have spent on guitars and red-neck shit, i had spent more WISELY.
 
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2322

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1981 to 2001 gold returned -70%. 20 years, minus 70%. Zzzzzzzz.

Ayup. But look at what happened after 2001 :wink:.

Gold is usually a horrible investment but then so are most investments most of the time (you still own Russian Troika Dialog? No, unless you bought dirt cheap and are sitting on it). You have to change your portfolio as the market changes. I'm not a goldbug. I think gold is pretty and I find its unique properties fascinating, but I'm just interested in it to preserve and even make a little money. The true goldbugs spent a great deal of that 20 years building their hoards, buying cheap, waiting to sell high. They've made a fortune in the past four years. Under our ridiculous system of banking, periods of boom and bust are inevitable but never moreso than when the bust is artificially delayed by pouring cheap capital into the markets. As soon as that happened, the goldbugs started chattering like 17 year cicadas because they knew what was coming.