Stocks, Gold, Silver, and the printing press.

[smokingman]

Dollar down.Stocks down.

Gold $1431.80 (new all time record)*$1434.10 at close
Silver $34.59 (31 year high)*edit $34.66 at close on NY index(for those just joining that is a 22.74% gain in the last 30 days).
I found a new place that I like to look at gold and silver prices.It includes a nice chart for % over spot for a number of PM coins currently being paid,it helps to give a better idea on real demand. 24hGold - Press Review - Gold Price, Silver Price - Buy Gold, Sell Gold, Silver, Platinum - Charts, Prices, Gold Stocks, Mining Stocks, Bullion Dealer

National debt.14+ Trillion(300+ Trillion if you want to count unfunded liabilities).

Dollar flip-flops after Bernanke, ISM Currencies - MarketWatch

“The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation,” Bernanke said in prepared remarks to the Senate Banking Committee, kicking off two consecutive days of congressional appearances.
He also reiterated his strong support for the central bank’s massive bond buying program, sometimes called quantitative easing(*My note...better known as destroying the dollar*). Rising bond yields after the program started indicated increased optimism about growth, he said.

So what the great Thief in chief(Bernake)is saying is that the 200% increase in commodities year over year will most likely not affect the banks bottom line,and that the people of the world should just deal with it and keep there mouths shut.I have tried to keep my political views out of this thread and for the most part just state the facts as they happen.Sorry about the lapse and Ben bashing,but I am just REALLY pissed off after watching his little talk with congress today.
March 1,2011

 

[John Galt]

Try these on for size:

Along The Watchtower

zero hedge | on a long enough timeline, the survival rate for everyone drops to zero

Monty Pelerin's World » Economics, Finance and Politics Through The Prism of Classical Liberalism

Ludwig von Mises Institute - Homepage

 

[smokingman]

As Silver Touches $34.90, US Mint Runs Out Of Bullion Blanks, Halts American Eagle Silver Coin Production | zero hedge

Ill edit this at close and post the price.

Take a look at the Commodity charts.Nearly vertical.
Commodity Futures Online Trading - Bloomberg

 

[ATOMonkey]

I think it's a bad sign that people went from pushing gold to pushing silver on the radio and TV.

When you see "cash for silver" things will be even worse.

 

[Joeyidgaf]

You think firearms (physical, not stocks - and stocks as in stock market, not shoulder stock) are a safe investment? If it gets as bad as you believe, firearm prices are bound to go up again. And if it were me, and my family was starving and worried to death, I'd take a glock over an ounce of gold.

 

[ATOMonkey]

The only safe investment is food. You're guaranteed to need it and the likelihood of it increasing in price is virtually guaranteed.

It's a hedge against inflation if nothing else.

A year from now, we have have a very firearm friendly president and congress in power and you would see prices drop to GWB first term levels.

People are buying now becasue they're scared. The market has reacted by first increasing price, and then increasing supply, and slightly reducing price.

If the demand decreases (less people scared), then the market will have a surplus supply. Prices will drop.

We might see a slight decrease in food prices if everything turns around, but with canned veggies at $.60/can and poultry at $1.00/lb, it's not likely that the price can go much lower.

I think it's being held low artificially for some reason... Just don't know what. By all logic, Kroger prices should be going up, not down.

 

[smokingman]

Interesting read.

You think firearms (physical, not stocks - and stocks as in stock market, not shoulder stock) are a safe investment? If it gets as bad as you believe, firearm prices are bound to go up again. And if it were me, and my family was starving and worried to death, I'd take a 10/22 over an ounce of gold.

Then this post today? Same person?
You think firearms (physical, not stocks - and stocks as in stock market, not shoulder stock) are a safe investment? If it gets as bad as you believe, firearm prices are bound to go up again. And if it were me, and my family was starving and worried to death, I'd take a glock over an ounce of gold.


Just curious as the posts are more than 6 months apart.

 

[lashicoN]

Uh...that's weird. As I was reading his post I was thinking to myself "I'm pretty sure I asked this guy a similar question a while back". But it's like word-for-word.

I'd take a 10/22 over a Glock though. I had a Glock, didn't care much for it. Why did you steal my post, Joeyidgaf?

 

[smokingman]

March 2,2011

Euro rallies with ECB meeting ahead; dollar weakens | Reuters

The euro rose to a near four-month high against the dollar on Wednesday and looked set to extend gains on growing expectations interest rates in the euro zone will rise earlier than those in the United States.
The Swiss franc soared to a record high against the dollar as escalating tensions in Libya and fears of contagion to other oil-rich countries, especially Saudi Arabia, prompted investors to seek safety in the Swiss currency.
*Note: During nearly every crisis in the last 100 years the US dollar has been the flight to safety.This is no longer the case.


Carter's says rising input costs to hurt margins | Reuters

"Since our most-recent call with you last October, cotton prices have increased by nearly 60 percent, far beyond what most had expected," Chief Executive Michael Casey said on a conference call with analysts.
The CEO said fall 2011 costs are expected to be up about 25 percent, and the company is going to raise prices to help fight that.


Silver:$34.84(31+ year high)

Gold:$1437.70(new record close)

Dow:12066.80

 

[smokingman]

Dollar down.Stocks down.

There where some TINY(sorry do not know how to type in purple)up moves in a few commodities.

Silver:$35.59 A new 31 year high.
Gold:1432.10
Oil:104.42
Cotton:212.49(more than double year over year)

Buy things you need in bulk.Go through your house and make an inventory of everything you use.I am not talking about just prepping,but having a hedge against inflation.If you use items on a regular basis now is the time(rather the last chance)to stock up.If you have any large purchases you want to make make them now.

Prep.Things are going to get much worse very quickly now I think.

March 4,2011

 

[smokingman]

DOW 12090 down 79 points.Dollar down.

Gold:1434.50
Silver:36.06

Federal Reserve's Lockhart: Oil shock could lead to QE3 - Mar. 7, 2011

February $223 Billion Budget Deficit Largest Ever | zero hedge (Just an FYI,that is more Deficit in one month than in all of 2007)

March 07,2011

 

[smokingman]

Hopium,fairy dust,and Unicorns came to the aid of the market today.

Market Report - Mar. 8, 2011 - CNNMoney.com

Or is could have been $32 Billion 3 Year Auctions Prices At 1.298%, Indirect Interest Picks Up Modestly | zero hedge or Primary Dealers Flip 53% Of Just Issued 7 Year Bond Back To Fed In Under Two Weeks | zero hedge

The banks are just raping the taxpayers....nearly every day.Buying treasuries,then selling them at GREAT premiums to the Federal reserve(did I mention they borrowed the money to buy them at 0 interest from the FED?).So yes,of course they are doing well,never mind the billions in bad loans,low volume,and **** poor performance in nearly every sector.As long as we just print money to give them they will keep posting record profits.

This whole thing(QE2) makes me want to puke. Sure the Fed gives the US Treasury a PORTION of the interest they make holding the notes,but that is kind of like drawing on a one dollar bill and adding a 0 and calling it a 10.

When the EU raises rates(and Benny boy was publicly calling for them not to today,telling them not to worry about inflation rofl)...the Dollar will die.
It may be the catalyst I talked about leading to hyperinflation in the USA in one of my earlier posts.They are going to raise rates,it is just a question of when.

Think Gas is High? Try Europe - TIME
On Tuesday, hundreds of British truck drivers in London and Cardiff brought traffic to a crawl in a campaign to get their government to lower taxes on diesel fuel, which now costs over $11 per U.S. gallon

 

[smokingman]

Exclusive: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Zero, Flees To Cash - No QE3? | zero hedge

It is still early in the trading day.Dollar down against pretty much every currency in the world.All stock indexes down.Oil and most all commodities up.

Silver:36.15
Gold:1431.90
Oil:105.10

 

[ATOMonkey]

Glad I only have about $5k in PIMCO TRF. Sheesh....

 

[awatarius]

I am sure most here are aware the Federal Reserve is getting ready to start quantitative easing part 2.I am going to share my opinion on the results of this.
All asset classes but treasure notes will increase in value.
Let me explain.Stocks will only increase in value because they are priced in dollars.You lower the value of your currency and the same stock is worth more.So fully expect all US based stock exchanges to go on a tear to the upside.There is a slight chance of some downward pressure as other countries(EU specifically)seem to think printing unlimited amounts of money is a good idea as well.So expect actual company performance and profit to be nearly meaningless as we end 2010.Stocks will go up.


Gold and silver.These are of course at record levels.Gold at all time highs and silver at over 30 year highs.The reason is inflation and a flight to the only asset class(precious metals)that will increase in value with little down side risk during inflation.You can hold Gold or silver long term at this point.I like silver more,but both have some advantages.
Last lets talk about QE2.It will make some quite wealthy,but it will not solve a single problem.There will still be high unemployment and a general loss of purchasing power across the US economy.So what then? My guess is after the elections they will create some type of super stimulus or national jobs program to try and reverse the decline of America.This later program will be self destructive.More printing of dollars,and yet a further decline in purchasing power for American consumers.I expect this to happen some time after the Christmas quarter comes in worse than expected.


So what then are we to do?Well we are not going to change Washington at this point.The Republicans will win the election,that is almost a given as Americans are sick of the way things are going.What most do not realize is they are running for more of the same,not real change.Why repeal and REPLACE the health care bill.Why not just repeal?That is another matter.I guess my point is this.If you have money in stocks let it ride until the elections(maybe a few days before)and then pull it out.Get physical silver and gold.Spend money on large purchases now,your buying power can only decrease from this point forward.Prepare for a huge increase in unemployment and inflation,possibly the collapse of the dollar.In short prep.If you have never done so now is the time.This is most likely your last chance to be able to afford it.Would you buy extra food and supplies(think soap,TP,ect...)if you knew in a very short time the cost was going to be 15-30% more?The Fed is telling you exactly that.They are not going to let stocks fall,and have stated publicly and often the last few weeks they will do anything in there power to assure they don't.IE print more money.


If you want to make a large purchase,now is defiantly the time to do so.Preserve your wealth.Cash is in a death spiral.TIPS are the only type of bond or note I would even think of purchasing as they are protected to a degree from inflation.Enjoy the run up in stocks,but have a set date to get out.Switch the way you think.You can not think about building wealth long term right now.You MUST think about preserving what you do have.

I am a silver investor, that being said I feel that I need more guns to protect that investment LOL. So in a way I am doing well in what you say. However the country is not going down. The end is not here, and we will not be fighting people off of our lawns anytime soon. The country has been in much worse shape than it is right now. Inflation has been higher, and many other economic factors have been way worse in the past. No the end is not close. It could get a hell of a lot worse before talk of such should even be mentioned. I took all my money out of stocks 2 years ago, 9 months ago I put a lot back in. I'm very glad I did. Good times are coming!!! With that the price of silver and gold will drop again :-( bad for my silver collection...

Thanks,
Matthew

 

[smokingman]

I am a silver investor, that being said I feel that I need more guns to protect that investment LOL. So in a way I am doing well in what you say. However the country is not going down. The end is not here, and we will not be fighting people off of our lawns anytime soon. The country has been in much worse shape than it is right now. Inflation has been higher, and many other economic factors have been way worse in the past. No the end is not close. It could get a hell of a lot worse before talk of such should even be mentioned. I took all my money out of stocks 2 years ago, 9 months ago I put a lot back in. I'm very glad I did. Good times are coming!!! With that the price of silver and gold will drop again :-( bad for my silver collection...

Thanks,
Matthew

There has never been a time in our history where 4-6 billion per week have been printed in addition to normal monetary policy to buy our own treasury bonds.
Never in our history has the money supply tripled in just 3 years.

Never in our history has 1/3 of all consumer spending been paid for by government programs(SSI,Food stamps ect).

We are exceeding in one month(February) the total deficit spending of 2007(at the time 2007 was the record deficit).

The house just failed to pass 61 billion in spending cuts,that represented less than 3% of the budget.

We will double our deficit in just two more years or less at current spending levels.

The US has lost most manufacturing capability.We just do not make anything any more.

There are less people in the work force now than in the 1980s.Though the population in 1980 was 226,545,805 and now we are at over 308,745,538.

16% of all Americans are now on food stamps.

Housing is still collapsing.Anyone other than employee of NAR with a brain will tell you it is going to drop 10-25% more on average.

Banks are not lending,and why should they when they can make billions just buying Treasuries and reselling them to the FED.

We have the largest group of people ever set to retire in the next 10 years.Leaving us with a Social security liability that is not serviceable.

There is no way inflation will not increase.They can keep denying it,and said it will not affect anything in this so called recovery.But the simple fact is if you compare M2(money supply)with stock prices they match almost perfectly.For every % they decrease the value of the dollar stock go up almost perfectly.

If you do not see inflation that is already here you are blind.Do I think I will be fighting on my lawn?I hope not.But my thread is rather more simple than that.It is begging people to prepare for inflation,and to preserve what they do have.Nothing more nothing less.

 

[awatarius]

There has never been a time in our history where 4-6 billion per week have been printed in addition to normal monetary policy to buy our own treasury bonds.
Never in our history has the money supply tripled in just 3 years.

Never in our history has 1/3 of all consumer spending been paid for by government programs(SSI,Food stamps ect).

We are exceeding in one month(February) the total deficit spending of 2007(at the time 2007 was the record deficit).

The house just failed to pass 61 billion in spending cuts,that represented less than 3% of the budget.

We will double our deficit in just two more years or less at current spending levels.

The US has lost most manufacturing capability.We just do not make anything any more.

There are less people in the work force now than in the 1980s.Though the population in 1980 was 226,545,805 and now we are at over 308,745,538.

16% of all Americans are now on food stamps.

Housing is still collapsing.Anyone other than employee of NAR with a brain will tell you it is going to drop 10-25% more on average.

Banks are not lending,and why should they when they can make billions just buying Treasuries and reselling them to the FED.

We have the largest group of people ever set to retire in the next 10 years.Leaving us with a Social security liability that is not serviceable.

There is no way inflation will not increase.They can keep denying it,and said it will not affect anything in this so called recovery.But the simple fact is if you compare M2(money supply)with stock prices they match almost perfectly.For every % they decrease the value of the dollar stock go up almost perfectly.

If you do not see inflation that is already here you are blind.Do I think I will be fighting on my lawn?I hope not.But my thread is rather more simple than that.It is begging people to prepare for inflation,and to preserve what they do have.Nothing more nothing less.

Unemployment is going down, corporations are picking up discretionary spending, retail sales are going up. Everyone else in the world is having problems as well. It is not something unique to us. We will be fine, but we do need to fix some things. And we will. Plus (hopefully) these wars we are spending fortunes no will be wrapping up soon. WE can't possibly solve our issues until we cut defense and war spending WAY WAY back.

 

[smokingman]

Unemployment is going down, corporations are picking up discretionary spending, retail sales are going up. Everyone else in the world is having problems as well. It is not something unique to us. We will be fine, but we do need to fix some things. And we will. Plus (hopefully) these wars we are spending fortunes no will be wrapping up soon. WE can't possibly solve our issues until we cut defense and war spending WAY WAY back.

How do you figure unemployment is going down?
You mean like last month when it went down .4% in one week,when we created a whole 10k jobs?
The only reason the figures are down is the number of people that have dropped out of the official count.To really lower unemployment even .1% you need to create 280k jobs in a single week.To maintain it exactly as it is you need around 180k per week.We have not had a single week where 280k jobs where created in over 3 years*Edit Ex census workers.

Read better news.Retail sales are down.Even the super retailer(Walmart) missed there last sales estimate for same store sales by 8 times the average "economists" best guess last week.There is a SLIGHT uptick in retail.But guess where it is? Food and Energy.It may not count in the CPI,but food and energy account for 38% of retail sales.So the slight uptick is in thanks to everyone paying more due to INFLATION not improved sales of anything.

 

[smokingman]

U.S. Dollar Collapse Could Occur at Any Time, Says NIA (FULL TEXT) - International Business Times

 

[ATOMonkey]

The Nikkei is also down 10% and falling. Japanese manufacturers have projected a sharp decline in manufacturing along with service providers.

This will accompany a corresponding increase in price of all electronics, automobiles, etc here in the state. Combine this with the new that China is looking to strengthen the Yuan, and that puts us in an even tighter spot. The Statists will get what they want, which will be a increase in American manufacturing, but it will be done at a high cost to all consumers.