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Old 12-05-2012, 09:45 PM   #17
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Join Date: Oct 2002
Location: In my car
Posts: 815
Many countries have pulled gold back into their home country as opposed to leaving in foreign countries vault. Venezula of course was the most prominent one to do so....after all moving that amount of bricks is going to draw some media.

State of Utah now deems gold as legal currency...Missori is debating it right now too. Shows their belief in USD.

What's also interesting is Federal reserve is not a US Gov't entity. In fact the US president has no power over the Feds.

Most American's don't even know this. They think Federal Reserve is Gov't entity and controlled. it is not. And the Fed is also not the first time the US has had a central bank. The Fed is actually their 4th attempt at a central bank. Look up First / Second / Third central bank.

And US currency has been a fiat dollar for many years. Hence in God we trust. Everyone has to believe in the US dollar as it's a belief system.

Has anyone seen the new US $100 bill? No one has actually as it's not in circulation. Conspiracy theories abound as to why the Feds have not released it yet despite printing billions of them. Perhaps they are anticipating a reset of the currency and overnight ? 'tada new currency'. We all saw what happens when countries print money and inflation goes crazy. But note how much reference to gold in the new US $100 bill.

Now with the Feds printing 40billion a month indefinitely...of course that is going to juice the stock markets. After all we are well into the 3rd QE round. And quite frankly I say this is the 4th as they did bail out ECB as well. Except that was a bunch of zeros on someone's spreadsheet. The impact of all this money printing is it has to go somewhere. So of course it devalues the USD...but as long as the world economies believes in USD as being stable it doesn't matter right? After all religion only works because you have to believe in whatever it is fundamentally or it doesn't work. Same with currency.

So where does that leave us investors? Silver is a pretty good bet as it does have industrial value and it's low value still. But if the USD does get devalued you can bet Silver and Gold will go sky high overnight and panic for all. If not silver drops back to it's industrial value. Gold aside from jewellery doesn't do anything at all. Industrial use of gold is so little.

Real Estate market dropping...i for one hope so. I'd like to be the modern day Tom Vu. Who is old enough to remember his TV ads? Signs say yes but who knows...the last 10 years have proven the bubble bursting is impossible. Foreign money keeps flowing in we have a market. Local folks can't afford it just like Vancouver market.

Equity market unfortunately is highly distorted due to 3 rounds of QE. The indexes should not be as high as they are. So stock picking these days by a blind man leads to winners. but at some point the party will end. Note since 2008...and each round of QE the markets rose. Now they decided not to turn off the taps at all!!!!!

So like a game of hot potato whoever is left holding equity when the taps turn off ouch! Fundamentally yes the economy is crap....but the US Fed keeps juicing it with these QE. It pisses me off to no end as this is no longer capitalism! this is very socialistic. like bailing out car companies. in true capitalist society these companies would have received zero bail out.

fiscal cliff..whatever been an issue since the summer and these yahoos in washington just don't want to give into Obama hot off his election victory. they will get over it and do it right on the deadline and claim victory not because of Obama. So really it's a non-issue.

Value stocks...who is left? not sure. As others have said many over valued stocks in the market now all thanks to 3rd round of QE.

As for gotta like vegas to touch RIM IMO. BB10 sucks and an OS doesn't make a device as demonstrated by OS/2 - if the young'uns recall that.
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