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alstry (36.04)

Is Gold THE ONLY Choice?

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November 11, 2009 – Comments (13)

Gold hits record near $1,120 an ounce

We know that debt is defaulting at record rates in America.  Debt is over $50 Trillion Dollar asset class.  It is the single largest asset class and is responsible for generating trillions of dollars of income per year.

It drives income to our banks, insurance companies, pension plans, mutual funds, corporations, and families.

As revenues decline, debt is deteriorating to such an extent that for the first time in American History, banks are being encouraged and allowed to lie about the value of assets.  If you thought mark to myth was a gray area, this is black and white.

New Rules and More Lies Hide Cancerous Commercial Real Estate Loans

How bad must conditions be encourage deception in accounting and misrepresentations to shareholders?  If banks are lying...who else is?  Pension Funds?  Mutual Funds?  Bernanke?  Congress?  How can anyone have confidence in what is represented by anyone if lying is condoned.

If you are a family or small business, and the debt you hold is defaulting, you don't have access to free money from the Fed to cover your loss.  Based on the upward movement of Gold, it is getting  clearer and clearer that fewer and fewer have confidence in currency or what is being represented anymore.

Physical metal has been a store of wealth for thousands of years.....when we know that banks are lying, what else can we trust in this age of deception other than the physical metal in your hand?

If money is a myth or deception....what is gold worth???

 

13 Comments – Post Your Own

#1) On November 11, 2009 at 4:31 PM, alstry (36.04) wrote:

IT IS A LOT MORE THAN 10 STATES RUNNING OUT OF MONEY

California's ongoing fiscal crisis has attracted national attention, but a study warns that nine other states are barreling toward similar economic disaster.

A report released Wednesday by the Pew Center on the States says Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin also are at risk of fiscal calamity.

That could mean higher taxes, more layoffs of government employees, increasingly crowded classrooms and fewer services in states that account for more than one-third of America's population and economic output.

Most of the states face rising unemployment and high home foreclosure rates, and their revenues have dropped by double-digit percentages.

The analysis urges lawmakers and governors to take quick action to prevent economic catastrophe.

http://finance.yahoo.com/news/Report-10-states-face-looming-apf-1219382684.html?x=0&sec=topStories&pos=4&asset=&ccode=

HIGHER TAXES....MORE LAYOFFS????

What about New York...it is running out of cash by Christmas....or Minnesota, it is delaying corporate refunds?......and revenue receipts are getting lower and lower as more businesses shut down and millions lose jobs.

Looks like more loan defaults as well in our new world....where Wall Street is fantasy and reality is crashing.

Large Scale Layoffs up 23% in Ohio

AOL Layoffs Signal the Tip of the Iceberg 

Dawson Marine - Bankruptcy and Closing

Zombulation is growing rapidly as we rapidly spiral into a depression.

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#2) On November 11, 2009 at 4:32 PM, RHaganC (< 20) wrote:

I read this at first "Is GOD the only choice," and thought, "man, Alstry is REALLY going for it now!" :)

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#3) On November 11, 2009 at 4:35 PM, alstry (36.04) wrote:

If you are talking about Goldman's God...we may be talking one in the same.....after all Blankenfein says he is doing God's work.

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#4) On November 11, 2009 at 4:38 PM, blueberrygoo (73.43) wrote:

#2 RHaganC LOL, yeah I can see it now:

"SOON you will FEEL the wrath of GOD on 12.25.9"

 WWJD?  Probably buy gold on the dips

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#5) On November 11, 2009 at 4:50 PM, davejh23 (< 20) wrote:

How much upside potential does gold have?  Is the fate of the dollar already sealed?  If the dollar falls another 15-20% over the next several months, I believe the Fed will increase rates sharply as some Fed officials have suggested might be necessary.  A sudden rate increase from 0 to 4% would stop the carry trade, bank profits would fall off a cliff, and the stock market would tank...this will lead us back into significantly negative GDP numbers, but at some point, the Fed has to take actions to preserve the value of the dollar...hopefully...

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#6) On November 11, 2009 at 4:54 PM, davejh23 (< 20) wrote:

I also thought it was odd that New York wasn't mentioned in this article.  The state flat-out tells you they're out of money, and this study doesn't pick up on it?!  If the study excluded New York, how many other states were left out?

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#7) On November 11, 2009 at 5:09 PM, alstry (36.04) wrote:

15....20%....are you kidding me????

If this isn't checked soon...you may want to look for a pickup.

If we enter a hyperinflationary environment...as a domestic consumer economy with relatively little export.....practically every business in America will go bankrupt and the current structure of our economy will break down.

It is not the end of the world....just the end of a world as you know it.  My guess is a lot of emergency planning is in the works....I am just not sure of the nature of the emergency.

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#8) On November 11, 2009 at 5:26 PM, Rasbold (90.98) wrote:

I have been hawking gold on almost every post this year.....is your Dow Jonesing?? Rhodium is still a better play, but gold has at least 30 percent to go; and then...when the dollar's resistance becomes 75 index.....R2...R3....o, no!!!

Look for mad state outreach to foreign countries to off our inflation big time.

Then we'll know. Then we'll feel.

 

May Your Dow Never Jones!

 

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#9) On November 11, 2009 at 5:32 PM, InflationSilver (99.96) wrote:

Silver is also a choice.

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#10) On November 11, 2009 at 5:33 PM, davejh23 (< 20) wrote:

Are you predicting hyperinflation within months?  I was saying that another 15-20% decline in the dollar within a few months would likely cause the Fed to raise rates significantly much faster than currently anticipated by most economists.  I'm guessing that this would destroy banks' profits and cause the stock market to crash.  I don't know if the Fed has the guts to do what is necessary to avoid the more dire scenario...

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#11) On November 11, 2009 at 5:45 PM, jesusfreakinco (28.95) wrote:

The answer to your question is no.  Gold is a very good choice as is silver as is investing in foreign currencies.  Diversify.  But, GOLD is a darn good first choice IMO.

For that Al, you get a rec from JFC :)

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#12) On November 11, 2009 at 6:11 PM, alstry (36.04) wrote:

dave,

What we are dealing with is a confidence issue...or shall we say fraud  issue.  Right now, markets are choosing to ignore it....but when they choose not to.....we could create a cascading effect.

On Wednesday, Madoff was the greatest investor in the world....on Thursday morning, his clients were broke.

It is impossible to have so many cities, counties and states facing financial catrastophe and double digit revenue declines yet we are coming out of the recession.

After all, America is simply a collection of consumers living in  cities, counties and states.  We are being set up for something, the question is what????

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#13) On November 11, 2009 at 8:03 PM, chk999 (99.98) wrote:

Canned Lima beans. You can't eat gold.

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