Tradefair & Financials

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08 Nov 11 13:58
Date Joined: 03 Feb 05
| Topic/replies: 6,745 | Blogger: Menelaus's blog
Mark Carney, the Governor of the Bank of Canada and now the recently appointed head of the Financial Stability Board (FSB) spoke at Draper's Hall here in London today over lunch.

I was so close to him, I could see the white of his eyes. But you didn't have to be that close to him, even the back row could get what the "game plan" is by just listening to his "Global Liquidity" speech. The playbook is open for all to see now, all you have to do is pay attention. Here some highlights, the "bolding" is mine:

“Despite the major steps taken in recent weeks by European authorities, the euro area will experience at least a brief recession”

“The severity of the downturn will depend in part on how European banks delever.”

" funding pressures increase around the world due to the European crisis, the best vehicles to ensure credit markets operate smoothly are still central banks and the measures they can take to increase liquidity"

"......ready to take steps to ensure there is enough liquidity in the system"

Translation for the uninitiated and half-wits like Benny: Central Banks will not allow deflation to take place at all cost. The "game plan" is PRINT, PRINT, PRINT. There is no Plan B.
Pause Switch to Standard View This is what the "game plan" is.....
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Report J2BLUE. November 8, 2011 3:00 PM GMT
That has been clear to anyone capable of thinking for longer than 6 seconds for a couple of years now.

I am stunned someone can see this, see the US numbers, see that Bernanke is called 'helicoptor Ben' and why he is called that and much much more and still pretend  everything is ok.

One thing is for sure, Mr Ben will be in something else all the way to hyperinflation and then the day before the camel's back finally broke he would have sold out of everything and ploughed into gold just before it took off. Then he'll say we were paranoid for years and that he got the same end result without 'wasting' years of trading time.

A house on a nice estate where I live (house prices in this area have remained consistant), priced in silver:

01/01/2009 - 33,300 ounces
01/01/2010 - 18,000 ounces
01/01/2011 - 10,100 ounces
08/11/2011 - 9,212 ounces

01/01/2012 - ?????????? (i'm going for it to break 8000, a price of 25 per ounce silver with the house staying the same)

I hope that tells people something and
Report Whippet November 8, 2011 6:16 PM GMT
Trebles all round!
Report FINE AS FROG HAIR November 8, 2011 10:07 PM GMT
Aren't you perhaps falling into Mr Ben's shortcoming of analysing an investment ( in this case property ) on too short a time scale ?.
I haven't done the numbers but what would they look like over a much longer period ?
Also investing in silver at today's prices has an awful lot of potential downside to it, and so risk tolerance has to be input as well.
Report J2BLUE. November 8, 2011 10:34 PM GMT
I've spent hundreds of hours studying gold and silver. They are in a major bull market IMO which is only just beginning. Some people won't agree but I think you'll see multiples of the currenct price before it becomes a bubble.

Just my opinion.
Report FINE AS FROG HAIR November 8, 2011 11:51 PM GMT
Well all these theories about them as being the best hyperinflation have been around seemingly for centuries.
All I know is that, based against normal current history inflation figures, they haven't been all that great investments over the past 20-30 years or so.
But you could be right that the time to invest in them is now after long last. Who knows ?
Report FINE AS FROG HAIR November 8, 2011 11:52 PM GMT
" ---best hyperinflation hedges---"
Report Mrben November 9, 2011 5:35 AM GMT
"I was so close to him, I could see the white of his eyes "

it appears melly has got himself a waitering jobSillySillySillyLaugh
Report Menelaus November 15, 2011 2:23 PM GMT
Reuters 2011/11/15

Charles Evans (CEO Chicago FED & FOMC voting member): "Federal Reserve should be acting as if there is a very big problem, the economic problems are much larger than the Fed had expected."

James Bullard (CEO St Louis FED) : "Federal Reserve can reopen liquidity facilities if the situation in Europe deteriorates"

What does "acting" and "liquidity" mean? Hmmmm, I wonder....SillySillySilly
Report cush November 15, 2011 11:11 PM GMT
Acting and liquidity, sound's suspiciously like a porn film to me.

I certainly don't want to see any footage of Merv King and Alan Greenspan getting it on. Yuk.
Report ahosang November 19, 2011 12:05 AM GMT
"Well all these theories about them as being the best hyperinflation have been around seemingly for centuries.
All I know is that, based against normal current history inflation figures, they haven't been all that great investments over the past 20-30 years or so."

Gold's not a 'hedge' against any specific phenomenon. It is a proven wealth asset for centuries. It is a storage of wealth, a savings medium, and is a trans-generational wealth asset. It has no counterparty risk, and so is often referred to as a hedge. The USD has been global stable reserve for decades, so gold was dormant. As confidence in fiat currencies wane, and they experience devaluations, gold is the primary candidate for wealth storage.

If Zimbabwe dollar is devalued, people there can get hold of a more stable US dollar for  wealth holding. If USdollar holders and euro holders see their currencies losing value, they can only store in gold or other artificial financial instruments. But other instruments have counterparty risk, which is very real, as we see from recent events.

But in order for gold to be activated as a popular wealth holding and for the price in fiat to rise significantly, it only takes a small increase in demand. China intends to represent the strength of the yaun with gold trade inside its currency zone. You can freely trade gold in EU, and the reserves of the EU are largely in gold, as the value of the reserves has risen despite the volume(by tonnes) has dropped/stagnated.
Report FINE AS FROG HAIR November 19, 2011 11:42 AM GMT
You say that gold is not a hedge against any specific phenomenon. It is a proven wealth asset for centuries.
I see it slightly differently in the modern context of ( say) the last half century or so.
In that shortish period investing in it has been more seen as a hedge against the types of events which are currently unfolding ?
Report Menelaus November 22, 2011 8:41 PM GMT
We've seen the white of their eyes. The "game plan" is there, wide open for all to see.

It's print, print, print......there's no Plan B.

FOMC Minutes Show Additional Easing Discussed

Some Federal Reserve policy makers said the central bank should consider easing policy further, according to minutes of their Nov. 1-2 meeting.

“A few members indicated that they believed the economic outlook might warrant additional policy accommodation,” the Fed said in minutes released today in Washington. “It was noted that any such accommodation would likely be more effective if it were provided in the context of a future communications initiative.”
Report Menelaus November 22, 2011 8:49 PM GMT
And just to preempt some uninitiated soul from posting "but they only said if it might warrant", advance GDP numbers were released in the US earlier today with.....a downward revision. Besides, 3rd Qtr debt growing by $447 billion but GDP only growing by $169 billion is all I need to know to understand the state of the US economy.

(Trivia: do you know that you can get a higher GDP number simply by lowering CPI? Think about that for while.....)
Report FINE AS FROG HAIR November 22, 2011 8:58 PM GMT
Gee this is all a new angle.
Would you mind expanding on it a bit ?.
( I've been away on a trip to the moon you see and haven't been reading your forum posts much ).
Have I missed something important and developing.
Something only you know and none of us others and their advisers don't perhaps ?
Report Menelaus November 22, 2011 9:07 PM GMT
I can't see your posts, that's what "blocking" a poster means, in case you are confused. I don't imagine though what you are posting is very supportive of my posts, nor very understanding of them, so no harm done.

I am puzzled by something though, and not too many things puzzle me. Are you obsessed with following me around the forum and constantly hijacking my posts by immediately posting drivel on top of them? That's very pathetic, init?

Don't bother answering that, it was a rhetorical question. Besides I couldn't see, nor am I interested in anything you possibly had to say.
Report FINE AS FROG HAIR November 22, 2011 9:34 PM GMT
I'll answer anyway.
No I'm not stalking you in any way, I'm just trying to offset your overriding tone of gloom and doom.
Btw I'm a bit puzzled why anyone would block anyone else, for reasons other than there being extreme nastiness involved.
If you can't refute  another person's viewpoint or can't abide it, then just ignore it, but don't block it.
Somebody ( jokingly) just asked if you were a Maoist ? Well you certainly have the Chinese communist approach to views not to your liking.
And if my posting is bothering you by its mere presence, then I'm not at all concerned about that.
Maybe you should consider posting the same mantra over and over again ?
Report FINE AS FROG HAIR November 22, 2011 9:35 PM GMT
--''Maybe you should consider NOT posting the same mantra----"
Report FINE AS FROG HAIR November 22, 2011 9:39 PM GMT
Also, and maybe this is the real shocker, a few of the other readers of this forum may in fact welcome my layman views ?
It's not all about you , or is it in fact ?
I note in your last post you once again came out with one of your usual beauties.
"---, and not too many things puzzle me.---"
It would be funny if you wern't so bleedingly serious in these self-congratulatory remarks.
Report fronter November 26, 2011 7:47 PM GMT
thacanadian is always right
Report Menelaus November 26, 2011 9:00 PM GMT
Did the Canadian take your money again fronter? Strange way to seek redemption if you are asking me. But considering the forum you are coming from I'm somehow not surprised.

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