The Great American Bubble Machine

[grannysoo]

Economic opinions from Rolling Stone Magazine:

http://www.rollingstone.com/politics/st ... le_machine

This is not a political story or political post. It's a story of what's really happening in the world.

 

[HerefordSire]

I wonder who is on the other side of the credit default swaps Dubai's Dubai World has. Without looking, I would guess Goldman owns a good chunk hoping to profit when the debt is defaulted just like they did with AIG, Lehman, and Bear Stearnes ran into trouble. A derivatives can be a neat thing. It allows one to act bigger than the one's natural capacity.

 

[peg4x4]

Gold is at a record price. Not that I have any,but if I did,I'd sell now.

 

[HerefordSire]

Gold is at a record price. Not that I have any,but if I did,I'd sell now.

I would say to all to respect this comment on the basis peg is not an expert in investing. Many times I have seen people pick-up on something and relay an opinion like this. RESPECT, especially when you are at the horse race track!

Theoretically, gold provides a store against inflation through fiat currency debasement. For example, copper has risen 100% in the last year alone while the dollar has fallen about 20% this year alone. If copper moves another 100% and the dollar continues to drop, then copper could cost a bunch more than expected if you are invested in dollar denominated investments.

We need a dollar rebound. Keep your eye on the dollar. Gold will tank if the dollar reverses. Will take some bad news though, like the Strait of Hormuz (sp?).

 

[peg4x4]

It doesn't matter what I do with money,it's wrong.. + don't have any of anything to do anything with. However,am warm and dry,plenty to eat and cloths to wear..I even have a truck to drive. Utilitys are paid and running.. There are lots of people who can't claim even one of these things,so guess I'm rich,huh..But no,I can't claim to be any kind of economic anything.. Only thing I know for sure is our supply lines are getting too long.

 

[HerefordSire]

It doesn't matter what I do with money,it's wrong.. + don't have any of anything to do anything with. However,am warm and dry,plenty to eat and cloths to wear..I even have a truck to drive. Utilitys are paid and running.. There are lots of people who can't claim even one of these things,so guess I'm rich,huh..But no,I can't claim to be any kind of economic anything.. Only thing I know for sure is our supply lines are getting too long.

The things that are most valuable are invisible, therefore you are wealthy.

 

[grannysoo]

The things that are most valuable are invisible, therefore you are wealthy.

Well said my friend. Big difference between riches and wealth.

 

[HerefordSire]

Well said my friend. Big difference between riches and wealth.

Thanks grannysoo!