Oldtent Archives 2007 - 2008

johngaltfla.com/blog2/2007/11/14/prepetorial-5-eat-your-guns/
By John Galt

The temperature had to just be miserable today for May 14, 2011, as here I was at a WalMart supercenter queued up in a long line with every other hungry soul in the county it seemed. The radio was blaring the news and some music from the Voice of America, now broadcast on the A.M. radio around the clock as the war in Pakistan and Iran had everyone’s full attention. The announcer came on at 11 a.m. sharp to give the local news and weather when I heard him say “it’s now 91 degrees here in Columbia and the South Carolina news will follow the VOA World Update at 11”. The news was disturbing as usual and the crowd was getting restless. The line had well over two thousand people in it and since the program was mandatory, once you were in line, you could not leave. As we stood there, I noticed the Home Guard patrolling the area, with machine guns mounted on Humvees in full view along with dogs and several large trucks filled with rifles and pistols. “What a program” I thought to myself. This was the most ingenious, yet devious thing I had ever seen and yet I was trapped into because I said “it could never happen here” over and over again to my friends and family.

I had a glitch “unable to load graphics conversion filter”

Can you post it as a thumbnail?

Thanks for the debate tonight.

aurum

Just joking around here as I am sure you know.

doc1.doc

My minority opinion is no. While we were in the five wave advance that rule worked. Now we correct the whole and that rule will not work - it will be lower.

But I may well be wrong and most here think we are in the third five wave so then it would work as an approximation.

IMO.

aurum

My point on inflation is that a small amount gives a chance to react soon enough to avoid the bigger devil of deflation.

But I do agree that the printing presses have run enough maybe we need your idea to keep the (expletative) in check.

aurum

Do we go back to the 300DMA as always?  daily, weekly, and monthly are curling over…

Thoughts?

Agree that a debate could go on forever but I don’t think that

without inflation we would have deflation and at least a “gold”

standard kept inflation somewhat in check. Look at what

happened after Nixon went to the dark side in 1971

www.financialsense.com/Market/daily/tuesday.htm

Auric

I think it is entirely too early to say that Bennie has done a much better job than Greenie.  Bennie has only been practicing for two years while Greenie had 16 years to practice and perfect his BS!

What better inflation indicator?  Appears to be the same BS on inflation that Grennie was spinning.  I mean no disrespect, but anyone who actually believes that inflation is only running 2.2% in the United States is reading the numbers that Bennie and Greenie put out and not dealing in the real world.  The only better inflation indicator he can use that will make me happy is the TRUTH and the TRUTH is not 2.2%.  One of the first things that Bennie did was get rid of the canary in the coal mine - M3 because it cost too much to compile (hahahaha).   How is that better than Greenie?

If his reply to Ron Paul on the falling dollar, is an example of his academic smarts, then he is dummer than a box of rocks.  I will paraprase, but his answer was along the lines that “the falling US dollar does not effect US citizens because they only pay in US dollars” was certainly less than a honest and complete answer.  Yes, they do pay with US Dollars but they will have to use a lot more of those US Dollars to buy the goods we are importing than they did two years ago or last year.  Does he really think that OIL would be $95 a barrel if the US Dollar Index was at 100 instead of 75. 

I must admit that I had hope for him, even with his ridiculous remark about dropping money from helicopters if need be, until he caved to Wall Street, Bank Street and Hedge Fund Street and cut interest rates by .50 and then another .25.   To me, that is like an arsonist pouring gasoline on a fire in an attempt to put it out.   Bennie tells Chuckie Schumer that they should raise the limit that Fannie/Freddie can write loans on to $1,000,000 from the current $417,000.  Now how does that make any sense?  Fannie and Freddie are both a disaster and Bennie wants to make it even worse?

I respect your opinion; however,  Bennie has not shown me anything at this point which gives me the warm and fuzzies!  Have a good evening.

I used to follow that one in ‘04. Totally forgot about it… looks like it got some life.

aint up to. I had the good fortune a few years ago to get to know some of the engineers at deere in Illinois.  Great group of people.  Perfectionists.

Well I think deflation is the devil to be feared. Once people believe that tomorrow I can get it cheaper - that turns into an ugly spiral as tomorrow doesn’t come. It is a devil we don’t know how to deal with. Inflation is a devil we know how to deal with and the philosophy is good for the economy - I need to buy today as it will be more expensive tomorrow. Of course it is true that inflation robs the savers and that is why it needs to be kept to a small level. It also at a small level gives us a cushion against the bigger devil of deflation.

To really stir up debate - if we tie the dollar to gold - then our supply goes up and down with the supply of gold - what happens in peak gold to the world? What happens with inflation/deflation?

I agree excessive fiat printing (especially when lied about is a devil) - but to go to a gold standard IMO (another IMO) is a bigger devil.

Just IMO.

aurum

Thanks for replies last evening. Yes, silverboom, I know people such as you describe, and don’t waste time on them, but there are others, especially if they are very close to you, that may have reasons either for not getting it, or for not doing or being able to do something about it.  At least one of two of those I would like to be able to help, and will keep trying.   And Irish, right, very difficult question and situation… And that unusual volume of wire transfers does make you go “hmmmm”— but there is no-one on this board that doesn’t know something’s up; just another manisfestation.

I do agree, I think we have a little plateau here for a while while gold fights with that $800 level that is forgot to do when it blew through.