Oldtent Archives 2007 - 2008

Thanks for that ten minute Video Link

Good One

2_p

Deflation, it seems simple to me, inflated prices for necessitys like food and gas, job loses, fear of job losses, and wage freezes, it’s having an effect on peoples life slyles, their not traveling as much, buying as much. Wage ganishments making it even harder on them,or repos for things on credit they can no longer pay back same scinerao before the great depression with jobs falling apart and people stopped buying the things that kept the economy going. Except this time food and fuel won’t be cheap. So we will have a inflation/ deflationary scenario. In those days there was a more extended family orientation. These days it is the nuclear family, mom, dad, 2.5 children, kids grow up go their own way. Then extended familys would pool their resourses togeather. These days were on our own. Even the biggest co. will be hurt. I was checking Toyota, Honda vs all the US car makers, wondering if they will do better with the smaller cars they produce. Well even their profits will be in a slump. Why US is going to just stop instead of making better gas economical or alternative fuel cars is beyond me other than maybe the way the economy is they can’t afford to buy them either. It’s just all a mess right now. Meanwhile banks and such won’t lens making it worse.

John Mauldin has an e-mail out today that is titled “The end of the inflation scare?”

Note that the question mark is inside the quotes so the question mark is Mr. Mauldin’s punctuation, not mine.  I did not think it was necessary to re-post here on Goldtent Mr. Mauldin’s e-mail article of today, since you and most Goldtenters probably see it anyway.

p.s.  I am just having verbal fun with you, as I have not even read Mr. Mauldin’s article yet, just the title.  Inflation? then deflation? or vice-versa in order?  All I know is that quite a few categories in our household budget are more costly now than they were a year ago or 6 months ago.  And as for benefitting from inflation because we can then pay of debts with increasingly cheaper dollars, I dont quite get the point unless one has an assured way of getting those dollars.  The PM markets in the months since spring 2006 have  not shown me how to accumulate dollars from capital gains or dividends from the PM stocks in our portfolio.   So if one doesnt have new sources of dollar profits from the sale of PM stocks, in my opinion it doesnt matter if the dollars are increasingly “cheaper” for paying off debts.

But I suppose I am missing something here.  And of course I am not talking here about  the “more expensive dollars” that were previously spent to purchase physical silver and gold, assets that I will not sell in the foreseeable future.

Just rambling thoughts on the evening before a national holiday, Canada Day.

By Rebecca Keenan

July 1 (Bloomberg) — Rio Tinto Group, the world’s third- largest mining company, won a price increase of as much as 97 percent for contract iron ore from all its Asian steelmaker customers, matching an agreement with Chinese mills.

Asian steel mills will pay 80 percent more for Pilbara blend fines and 97 percent more for lump product in the 12 months that began April 1, the London-based company said today in a statement. Baosteel Group Corp., China’s biggest steelmaker, agreed the new prices on June 23.

“These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world’s fastest-growing markets,” Rio’s iron ore chief executive Sam Walsh said in the statement.

Iron ore prices have surged for six years, raising costs for steelmakers such as Nippon Steel Corp. and Posco. Crude-steel demand in Japan, Asia’s largest economy, will probably rise to an almost 35-year high this quarter, the government said yesterday.

Rio is increasing production from its Pilbara operations in Western Australia to 320 million metric tons a year by 2012 and then to 420 million tons a year after that. It produced 145 million tons last year from the mines.

BHP Billiton Ltd., the world’s largest mining company which hasn’t settled new contracts, said June 24 that the prices agreed by Rio are too small to cover extra shipping costs. Chinese steelmakers, the world’s largest consumers of the ore, will resist any attempt by BHP to win a larger price than agreed to with Rio, an official familiar with the talks said June 25.

To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net

been there, done that, hopefully not again. when the oil bust comes, oklahoma may have to revert to the social climate of days gone bye.

rno

  Interesting sources.

  If you haven’t seen this one yet. It’s good.

http://video.google.com/videosearch?q=esoteric+agenda&hl=en&sitesearch=#q=esoteric%20agenda%20full%20movie&hl=en&sitesearch=

and yet on the radio today I heard the #1 contributor to political cam’panes’ money wise is…….drum roll…..Financial Institutions/substiture bankers. Now, you don’t think they are posistioning themselves for more favorable laws do ya.??!! Bastagses

   I’ll take a crack at that one.

   I’d look for support at 440 and 418-420, then 410

   Resistance 460 probably some others 475 or so on the way up.

   Dunno if we’ll breach the 520 level his time around - but maybe. I think 520 will be a distant memory in the Fall.

   The charts are always “maybe”. Good for oversold, overbought, but tough as predictors in the HUI especially.

   What does your intuitive sense tell you?

All I’m saying if the inflation that zim is experiencing is only from the depreciation of their currency, why  can’t it also happen here?  Zim today is a far cry from  Republic of Rhodesia from 28 years ago.

Lol Have gun will travel, good idea. Put a picture on the side of the truck of Road Kill and the name of the Market Makers. And on the top Redneck Financial Handyman.

the argument is solid but I wish he was wrong.

http://www.minyanville.com/articles/GS-Bernanke-Fed-Credit-xom-economy/index/a/17804

that sounds like a good ” quote of the day ”

by someone who may ” have gun and will travel ”

..

Yep, you convinced me. And you don’t have to worry about a Ceo of a company getting up on the wrong side of the bed one morning, and deciding to sell all his shares for what ever reason. Or the naked shorts hoping to beat up a stock so bad no one has confadence in it any more so they don’t have to cover, while the sec looks the other way. Maybe why the Ceo sold his shares. Mean while the PM spot price is going up and your stocks aren’t, you sell but now you dollar is worth even less money, something you can’t even claim on taxes.

Just clicked on Silver Valley Mining Journal out of my favorites list and the Header loaded and then I got an alert popup from Norton saying they had just blocked a “malicious” worm from loading on my puter.  Don’t know if the timing was a coincidence or not but it may be a good idea not to go there.

corn and soymeal both have rpw to the downside. i think maybe the long wheat/short corn spread may go crazy for a month or two.

rno