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jesusfreakinco (28.95)

Buffet, PIMCO calling for massive inflation

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March 11, 2009 – Comments (12) | RELATED TICKERS: GLD , TRX , ABX

"Buffett, the billionaire investor, said March 9 on the CNBC television network that efforts to stimulate a recovery may lead to inflation rates exceeding those in the 1970s."

Does anyone remember what inflation was like in the 70s?  It seems Warren and Bill Gross have made their bets and guess what...  They AGREE with Sinclair, Rogers, Faber, and Schiff.  Inflation in the high teens constitutes hyperinflation and Warren admits what is coming will be worse than the 70s...

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12 Comments – Post Your Own

#1) On March 11, 2009 at 11:04 AM, alstry (36.06) wrote:

Do you think gold has already priced in inflation???

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#2) On March 11, 2009 at 11:09 AM, IIcx (< 20) wrote:

IMHO, Gold may be a good buy in the 700s.

Gold is likely to fall into the 600s or lower before inflation hits in 2-3 years.

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#3) On March 11, 2009 at 11:11 AM, jesusfreakinco (28.95) wrote:

Alstry,

I'll let others chime in here, but NOOOOOOOO friggen way.  

Gold is massively undervalued, especially on an inflation-adjusted basis compared to the crises of the late 70s/early 80s.  And, as you are keenly aware, the crisis we are currently facing is MUCH worse than the 70s (admitted by the Oracle himself).

However, Al, I don't recommend green thumbing gold right now.  I've got some catching up to do.  As a matter of fact, why don't you add to your IAG red thumb and give us, not as smart guys, a chance to catch up.

Now that Warren and Bill have spoken the 'i' word, watch gold take off...

Al - By the way- take a look at the news re: TRE.  The Chinese just signed a royalty agreement with TRE.  This is a 'silent' move into the PM market as it doesn't require cash up front to acquire assets.  They can begin mining without paying to acquire assets.  Go JS!

JFC

 

 

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#4) On March 11, 2009 at 11:14 AM, jesusfreakinco (28.95) wrote:

IIcx

based on what? a hunch?  TA?  LOL

Your opportunity to buy gold below the current levels is GONE.  Gold going significantly higher from here.  One of you TA bugs is calling for gold to hit 10,000 before all is said and done.  Can you imagine what gold mining stocks will be worth when gold hits 10,000?

JFC

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#5) On March 11, 2009 at 11:21 AM, jesusfreakinco (28.95) wrote:

TRE - China's silent acquisiton of gold and other PMs

http://biz.yahoo.com/iw/090310/0480985.html

"The company has entered into a royalty option agreement with Songshan Mining Co. Ltd. of Duolun, Inner Mongolia, China. Under the agreement, Songshan Mining is granted an option to acquire Tanzanian Royalty's interest in its Kabanga nickel licenses located in northwestern Tanzania, subject to a 30-year 3% net smelter royalty in favour of Tanzanian Royalty. Songshan Mining currently operates two iron mines in Inner Mongolia, China."

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#6) On March 11, 2009 at 2:59 PM, stickman555 (< 20) wrote:

whats a kreugeran going for these days

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#7) On March 11, 2009 at 3:13 PM, 4onthebeach (92.31) wrote:

Could inflation be a good thing when it comes to paying off our National Debt?  The future value of the debt is lower with inflation.

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#8) On March 11, 2009 at 3:25 PM, jesusfreakinco (28.95) wrote:

4onthebeach

It depends on what level of inflation.  According to Warren it "may lead to inflation rates exceeding those in the 1970s"

Anyone looking forward to double digit inflation and mortage rates in the high teens?

However, to your point, inflation is the only thing that will provide the ability to pay back our debt unless it causes our country to go broke because we can't afford to service our debt.  Its a catch 22...

JFC

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#9) On March 11, 2009 at 11:22 PM, Ecomike (< 20) wrote:

The key word from Warren was "May". The sky "may" fall too. Deflation "may" run out of control and bankrupt us all too. For now excess productive capacity, inadequite demand for goods and services that we can currently produce with out inflation, increasing unemployment, and falling asset prices is what you need to worry about. Until you real estate assets, stocks, and manufactured goods as well as real consumable commodities go to prices higher than they were in 2007, inflation will not be a concern. Deflation is what you should worry about, because if it gets out of control it could end in WW III.

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#10) On March 11, 2009 at 11:57 PM, btown819 (95.85) wrote:

What are some companies that do well in an inflationary environment excluding gold/silver/commodity type companies?

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#11) On March 12, 2009 at 1:02 AM, awallejr (79.46) wrote:

No comparison to 1970s and now.  In 1970s the boomers were just coming of age.  The economy had alot of room to grow yet.  Incomes were rising at high rates.  Now, you have boomers declining, with a smaller generation behind them.  The economy will be contracting and transforming,  And most importantly, incomes will not be rising at a tremendous rate until those boomers are out of the workplace. 

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#12) On March 18, 2009 at 6:42 PM, jesusfreakinco (28.95) wrote:

Got gold?  USD in free fall today...

JFC

 

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