How does investing in gold work?

We are definitely at a higher risk of default now than we were in 1980 - I'll give you that. However, do you think we are still a AAA credit rating? What about currency risk?

Now questions for me:

How many bonds did the Federal Reserve own in 1980? How many bonds does it own now? What would the interest rate be if the Federal Reserve had not intervened and monetized trillions of US debt?

What happened to Germany in the 1920's when its central bank monetized its debt?

Why do some corporations have to offer higher % returns on their bonds than others if not because of risk of default?

 

I'm here I just have different working hours than you do.

 

Except you didn't address my point. I'll repost it in its entirety for you:

1) The raising of interest rates by the Fed ended the inflation by starting a recession. Prior to this and DURING the period of inflation Gold exploded - because as I said, it is THE asset to hedge against it.

The bold part is the part you ignored.

P.S. The 'N' was a typo, you can just call me Smoke.

 

Thought I'd point out - the 1yr rate on a Greek bond is now 111%. As I mentioned earlier interest rates on bonds are a function of RISK OF DEFAULT.

 

just because the US can print dollars dont mean it can't default.....it can monetize the debt and pay back that way.....the only problem is they are paying back in depreciated dollars...sort of what zimbabwe did!

 

If the US printed dollars, it would have no debt.

So try to keep your discredited memes straight.

 

During WWII.

1917,

It didn't have to ever. It did so to prevent deflation, the real threat in the wake of Bush's recession.

Adjusted for inflation?

Commodities rise and fall for all sorts of unpredictable reasons. If we knew the reason, every dollar in the world would invest in commodities everybody knew were going up. But we never know that, either with gold or pork bellies. Get over you gold magic.

 

If the US printed dollars, it would have no debt. Landru Guide Us

From a logician's mind, the answers are:
1. Print money and have the US become equivalent to Mexico (i.e. a massive devaluation of the dollar)
2. Default (i.e. have the US become equivalent to Zimbabwe).

I'm with you, print away. Mexico is better than Zimbabwe, but it still sucks.

 

LOL thats what zimbabwe did....sure you eliminate the debt but you also have to pay 50 dollars for a happy meal.....better go learn some basic economics

 

you get over your " THE DOLLAR IS STRONG" fantasy....we are not living in the 60's anymore so get over it!

 

in mexico the exchange rate used to be 12 pesos to 1 dollar back in 1980.....after the monetization it went to 6,000 to 1 dollar.....then to 11,000.....then I believe in the mid 90's the three zeros were removed to have it back to 11 pesos to one dollar.....the point is simple........you monetize debt and you effectively wipe out the savings of the middle class!

 

Holy crap - did Landru Guide Us actually say:

'If the US printed dollars, it would have no debt.'?

LOLOL

I just found out all I need to know about his economic knowledge.

LOLOL

 

its truly amazing how little these guys understand economics.....if printing money was the road to prosperity then people in zimbabwe and poland would be amongst the wealthiest!

 

Do you have any idea WTF you're talking about or do you just make up (*)(*)(*)(*) as you go along??? WWII 1917???

The debt to GDP ratio in WWII was 70.4%

You not only have the wrong numbers, but also the wrong year and the wrong war.


[ame="http://www.youtube.com/watch?v=9prQt3SLYCQ&feature=player_detailpage"]http://www.youtube.com/watch?v=9prQt3SLYCQ&feature=player_detailpage[/ame]

 

not to mention that after WW2 the USA was an industrial powerhouse with huge surpluses from its exports!

 

Great book, deserved the prize.

https://www.amazon.com/Lords-Financ...ywords=lords+of+finance&qid=1600208175&sr=8-2

 

You may wish to skip the first thirty minutes of this interview to cut to the specifics on your question......
this interview was done in 2014 but is still quite valid....

FORGET IRAN, IRAQ, UKRAINE
THIS IS WHERE WWIII STARTS...

 

Inflation wipes out both savings and debt. If the American middle class had any significant savings, you might have a point. They don't. But they do have lots of debt, so inflation would save them.

 

LMAO... How does Inflation wipe out credit card debt again ? I missed that part ?
The Upper Middle class still has plenty of Savings, and the FED wants it, along with the 1/3 of mortgages they now own. Leave no doubt, the rich are coming for every penny and if we keep these regs, tax structure, and banking, FED Laws. They will get it, not all at once, but one day at a time.

And their is NO INFLATION in this world that can wipe 500T in worldwide debt. Nor the 45T between Gov't and now FED debt. You know, that free money they print, give to themselves, and then make the Public pay them back for ! They get it twice, you dont get a penny

 

You are correct, and a lot more BS the FED, Government, and Crooked Banksters with support of the Poilticans can be added to your list. Yet, the republicans, have vast think tanks supported by the banks to post online against Honesty. They want or should we write, NEED YOU TOO stay the course, dont buy gold or hard assets, use your CC to buy and have fun. Keep those extra leisure activities going and leave the savings for the crooks. It is no wonder you can see the country crumbling around us, people driving 20 year old cars because they cant find a job to buy a new one.
Sad to watch and only those educated enough can see the truth.

You have to go online to find it, it is never in the real news, on bloomberg, or CNBC. Those networks are ran by the crooks. I have been buying both Silver and Gold for quite some time. Sooner or later we get another Brettonwoods, or just a collapse in the dollar. China doesnt want reserve currency, why should they....

Soon the FED will introduce their Privately held Digital coin, have a law passed in this country to make it legal tender.

 

By being more than the interest rate on that debt. We haven't seen that yet in the USA, but we could.

That depends on what you call upper middle class, and plenty. But in general, no, they don't.

Right. That is why no one is allowed to mention the only monetary reform that can work: abolition of private commercial banks' money creation privilege.

Sure there is: inflation of all the currencies that debt is denominated in.

The Fed has now begun giving the money directly to the wealthy, parasitic owners of corporate stocks and bonds.

 

How does investing in gold work?

1- Buy gold.
2- Watch the price of gold go up.
3- Hear about NASA or a private Space company launching a mission to a gold-rich asteroid.
4- Sell your gold before they reach it.
5- Retire with your savings as the price of gold crashes through the floor because of an overabundance of that metal.

 

For the average joe, gold is only a sound investment if you're planning to bury it somewhere and wait for hyperinflation. Which is a good idea, as long as you have other investments as well.

The gold sellers are making a 30% markup, which is why you have to keep the gold for a long time to make any profit off it. You could try to ebay it or something and undercut the hig sellers, but theres a very high worry among buyers about getting frauded by gold plated junk metal, so most people only buy from big sellers with a 'brand' they have to preserve.

 

The supply of gold is extremely inelastic because almost all the gold ever mined is still available to the market, and asteroid mining won't have much impact on that -- as well as being astronomically expensive. The gold price is almost entirely dependent on demand, and that is dependent on investor sentiment. As central banks -- especially the Fed -- try to get economies out from under unbearable loads of debt made immeasurably worse by the COVID-19 shutdowns, inflation will be guaranteed, and gold will be seen as the quintessential inflation hedge.

 

I've asked myself that question for years. The buyers and sellers of the commodity make $$ at both ends.