Oldtent Archives 2007 - 2008

It’s not an Oil Crisis it’s a Dollar Crisis

Peter Schiff
May 23, 2008

www.safehaven.com/article-10328.htm

stated for the record six years ago on various boards ..

news.silverseek.com/GoldIsMoney/1211570804.php

Two days ago, a director of the CFR, the Council on Foreign Relations, said that the world might return to using gold as money, and that central banks might start a bidding war for gold.

www.resourceinvestor.com/pebble.asp?relid=42919

Key excerpt:

AUDIENCE: Do you think central banks would start selling, and void their own agreements to limit the sales, which they have now, by selling much more of their gold in order to try to hold the price down once it starts spiralling up?

DR. BENN STEIL: My view is that if you look at the central banks around the world that represent our major creditors like in Asia and the Middle East, the big concern is the following: We hold too many dollars, too many dollar-denominated assets. We’d like to redenominate them, but this is tough. If we all decide to redenominate them, say, in euros, we’re going to take a big capital loss on what we currently own, and we don’t want to do that.

So how do central banks get out of that dilemma? My view is that they’re going to begin surreptitiously to buy out hard assets. For example, there was recently, I think it was about a week or two ago, a piece I saw on CNN.com, talking about how commodity price inflation may in fact be driven by monetary policy in the United States. And one private bank economist said, “This is ridiculous because the dollar, since last September, has only gone down by 11%, but oil prices have skyrocketed far more than that. If people are selling dollars for oil, then obviously the exchange rate, vis-à-vis other currencies, doesn’t go down.”

Central banks, I think, unlike this particular economist, understand that. So if they want to make sure that the value of their dollar-denominated assets don’t go down vis-à-vis other currency-denominated assets, the easiest way for them to do that is by buying commodities like gold.

AUDIENCE: They haven’t done that.

DR. BENN STEIL: They haven’t - well, they haven’t done it yet. But you understand that at some point, you reach a sort of tipping point. In other words, government officials tend to believe that the private market is full of herders, speculators who tend to move in one direction or another en masse, at any given point in time.

Central bankers definitely herd in their behaviour. That’s what they did in the 1990s when they all started selling gold. So it wouldn’t be particularly surprising if they all started buying commodities at the same time as well.

>>>>>>>>>>>>My only concern with tinyurl is that it is privately run by some buy in his basement as far as I know. He keeps running by donations and a small amount of ads. His servers went down a few months ago and 17 million links on the WWW quit working because they all went through his site. So if some day he decides to pack it in, every tinyurl link the in world (and this site) will quit working and you will never know where the original link was.

Not a huge deal, but I thought I would point it out.

tinyurl.com/4kvbca

You do make IT look easy ..

And you Americans have it
good,, at gas 4.10
here 4 liters 5.09
and are we thankful for
the cheap gas of yrs and yrs ??
LOL

Next time you suggesting a
stock HOLLER so I’ll hear ya ..

Have only SLW.TO and SST.V
and recently purchased in anticipation !!
of NeckTeck Indicator..

Have a wonderful Weekend my Friend ..

anotherone_bites_the_dust

the perennial gangsters

the nature of money .. from a birds eye view .. not the egg timer…

tinyurl.com/3ertqd

Since the value of the US dollar no longer is ’solid as a rock’ but rather is a floating feather or a sinking piece of rotted timber, guessing its value vis a vis all other floating/sinking currencies is great fun and very lucrative. But also creates inflation via the creation of Funny Money™ from this system of betting on future values of these floating/sinking currencies. The vapid nature of all this has been called ’smoke and mirrors’

sabre, your handle needs a disclaimer attached to it (for entertainment only)

and they sold their longs. This is bad news. The lease rates were extreme for the whole move up the past two weeks. That tells me they wanted the rise to be controlled. Lease rates fell hard today. When I see that, 9x out of 10x that means there will be some event that will allow gold to get creamed immediately. Next week should be poor for gold bugs, at least at the outset.

posted here on the paradise a month ago to buy..at 1.20 . occasionally ment gets it right ..

but am happy to slog around at the bottom of the golds // with all the very fine traders here .. making it look easy.. and hitting the buttons with precision … just read and marvel at the ease of knowing the reason for things. just set and learn at the feet of the giants ..

gas is up because of the inflation adjusted buck paid 4.10 regular to fill the tank yesterday. gold goes up as the buck goes lower .. from my dumpster view .. thats my story sticking with it.

ment holds

very good .. a 35c up to 58c when did you buy ..it is the timing… high for this stock was 1. 00

i suspect if a person scrounged around he could find even a better % rise,,lol

when did you call this.. for a basket buy .. a hold .. part of the portfolo.. buy at 1.20 now up 30% high for this stock was 1.65 or so..

I was gonna ask for a chart but I scraped one up myself.

Wassa’ matter?

Auric       Opps,  (c) chart go to timingcharts

D’oh 

http://siliconinvestor.advfn.com/readmsg.aspx?msgid=24615212

Knowing very little about options & futures ….. could you please give brief explanations why it’s “not good”.   TIA 

Presentation

www.silverstonecorp.com/insitepresent/

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Mr. ment

I need to know before
it goes up 30% LOL
good on ya ..

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abtd
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