Onlee 1 word for you.Theo_Fidel wrote:USA==Zimbabwe
What next.....
Hubris.
Onlee 1 word for you.Theo_Fidel wrote:USA==Zimbabwe
What next.....
KrishnaK wrote:Acharya,
The takleef is that these Indians should put their money to better use by investing it in infrastructure. At least the government should make it a viable option.
You said it better than I could have.JwalaMukhi wrote:
The biggest takleef is some want to define what is good for the many. Some people have idea that money and wealth should be spent/directed in an 'effective way' that they deem it to be correct. Those who advocate such position principally hate the notion of 'freedom of the individuals' to do what they like with their moneys.
People investing in Gold in India are in effect declaring independence from the so called 'corporations' and 'predatory government out to seek rent' who think they can organize the lives of people into fruitful occasion for 'consumption'(corporations) or 'enhance the quality of life' (by govts), through the mechanisms they think it is fit.
People should have the freedom to either direct their monies towards 'phillip morris corporartions' in the name of progress and development or invest in building a piss pot made out of gold.
Extraneous and irrelevant arguments about gold being used as dowry or to make piss pots should be none of anybody's concern, except the individual.
What one man's thinks is wastage can easily be other man's best investment.
In short, there should be full freedom to either be an Amish, a luddite or even a person who accumulates gold to just look at them for his/her fancy. Do not deride freedom, it should be prerogative of the individual.
Theo,Theo_Fidel wrote:Don't disagree with the other stuff but...KrishnaK wrote:Do you or do you not agree that people who earned the money have a right to decide what to do with it without some "wise man" at the top directing them on how they may use their hard earned money.
Well that is the entire argument isn't it.
Lehmann declaring $ Billion bonuses to execs as they were circling the drain, Wall street bonus of $35 Billion in 2007 just before their corrupt malfeasance destroyed the savings of millions. Then asking the same millions for $700 Billion in money or they would fire everyone, and then going ahead and firing everyone anyway just in case.
So what 'earning' are we talking about.
No the rich at the top have so much because the folks in the middle and bottom create so much for them to take. They should not forget it...
Professor Mahbubani of Singapore cites dependence on the dollar as one factor holding back Asia’s progress toward greater economic self-sufficiency. Sluggish institutional reform in governance of bodies such as the International Monetary Fund and the World Bank is preventing Asia from playing a role on the world stage commensurate with underlying shifts in economic performance, he says.
“This huge and growing gap will lead to progressive delegitimization of the IMF and World Bank. Developing countries will seek closer financial cooperation with rising new powers, such as China and India. Proposals like a BRICS bank will take some time to be realized, but political support will grow if the IMF and World Bank remain mired in the past.”
A further contradiction, Mahbubani says, is between the rising market integration of the Asian economies and the slow institutional integration of Asian countries. “In some ways, it was wise for Asians to take the opposite approach from the Europeans, where institutional integration facilitated trade integration. In Asia, trade integration is leading to pressures for institutional integration, but traditional Asian caution is hindering steady institutional integration.”
The Asian economy meanwhile is sending out mixed signals, but these seem to indicate fluctuating month-to-month fortunes rather than underlying strength.
Perhaps not the best choice of words. Plutocrat is probably better......or criminal scum.....or what would be even better is convicted felon and no longer able to hold a security brokerage licence although the lack of a licence didn't stop Bernie Madoff ....where was the SEC or the state of NY financial investigators? One can only wonder............Theo_Fidel wrote:OK. Edited mine as well.
I am surprised Neshant would write that though...
-------------------------
TSJ,
It is interesting you call such folks oligarchs.
Gold is your Hedge
Author : David Schectman
Published: July 2nd, 2013
http://blog.milesfranklin.com/gold-is-your-hedge
Notice that John Williams says, “Gold Remains the Most-Solid Hedge Against Looming Dollar and Inflation Crises,” and, “Central Banks Dumping U.S. Treasuries at Fastest Pace Since 2011 Budget Crisis.” Boy that sure cuts directly to the heart of the issue. The only way for the Fed to support the bond market is to continue QE. The mere mention by Bernanke that the Fed was “considering” easing slowly in the future caused pandemonium in the global markets. QE is with us “to infinity.” If you believe that we are facing a “Looming Dollar and Inflation Crisis.” This will be the result of a falling dollar, which is the result of continuing our policy of QE, then your “Most-Solid Hedge” is GOLD. He isn’t discussing “price,” or “timing.” He is stating that we all NEED GOLD.
But if you aren’t worried about a “Looming Dollar and Inflation Crisis,” then you don’t need gold regardless of the price. It’s that simple. If you are not concerned that endless QE and that “Central Banks Dumping U.S. Treasuries at Fastest Pace Since 2012,” then you don’t need gold regardless of the price.
If you are not very concerned that the Fed is buying up most of the U.S. Treasuries, you should be. That amounts to the purest form of Monetization.” If you don’t know what the word means, check it out on Google. How bad is it?
Fed Has Monetized 85.7% of Net Issuance of Gross Federal Debt Issuance with QE3. Separately, the Federal Reserve’s own holdings of Treasury securities increased by $9.7 billion in the week ended June 26th. That brought the total Fed holdings of Treasury securities to $1.928 trillion, where the net increase under QE3 of $268.3 billion accounts for 85.7% of the Treasury’s net issuance of gross federal debt coincident with expanded QE3, which began early in 2013.
Your interest in gold should be based on these facts and not on timing a market bottom, or trading gold for profit. Gold is your “Hedge,” your insurance policy, not your trading vehicle.
Williams opens his most recent commentary as follows:
Gold and Silver Selling Has Not Been Fundamental. Central banks were dumping U.S. Treasuries last week at a record pace (see Central-Bank Bond Selling section), yet, contrary to cash moving into gold, which commonly is seen in such circumstances, the rout in gold prices continued. Equity, credit and currency markets also have been unstable, but not of the magnitude seen with the precious metals. Global sentiments are shifting; something is afoot, and it likely is not good news for the broad financial system and markets. Whatever is unfolding could involve liquidity issues within certain markets, corporations, financial institutions and/or countries. It also could involve central bank efforts to pummel the precious metals. There already has been extensive jawboning aimed at pushing gold and silver prices much lower.
What has not happened here is a negative shift in the basic fundamentals that pushed gold and silver prices higher in recent years. There have been some misperceptions that briefly held sway over the markets, such as recent hype of imminent Fed tightening or “tapering” (see Commentary No. 535 and Commentary No. 536, in particular). These issues have been discussed broadly in numerous recent missives, particularly No. 527: Special Commentary and also Commentary No. 516 and Commentary No. 517, included here by reference. Once whatever underlies the current systemic turmoil breaks to the surface, look for the fundamentals supporting gold prices to regain dominance in the factors driving the market for the monetary precious metals.
In particular, the longer-range solvency issues of the United States, including the budget deficit and the debt ceiling, are likely to come to ahead in early September. As the economy slows anew, talk of the Fed reversing QE3 should shift to anticipating increased accommodation.
Gold Versus Silver Graph
If the recent selling in gold and silver, as seen in the preceding graph, were fundamental, those same fundamentals should be driving parallel sell-offs in oil and the Swiss franc. As seen in next two graphs, that is not happening.
Irrespective of the sharp decline in the price of gold, physical gold—held for the long term—remains the primary hedge against the U.S. dollar debasement ahead. Yet, it has to be in place, and it has to be held through the developing crises—irrespective of short-term market volatility—in order to provide the desired asset protection. Whether gold is purchased at $250, $2,500 or $25,000 per ounce, it preserves the purchasing power of the dollars invested. Someone looking to take profits at $100,000 an ounce is missing what has happened. Those “profits” are just the preserved purchasing power of the invested dollars. Another way of assessing that is to consider the implied proportionate amount of dollar purchasing power lost with those dollars that were not invested in the hard assets
-ShadowStats.com (see Commentary No. 516, Hyperinflation 2012)
I have often suggested that all of our readers should subscribe to Shadowstats. It’s not just me – Jim Sinclair also urges his legions to subscribe to Shadowstats. Williams’ information is not only interesting, it is vital. Vital for your financial survival in the hyperinflation that he expects to descend upon us by 2014.
This still-forming great financial tempest has cleared the horizon; its impact on the United States and those living in a dollar-based world will dominate and overtake the continuing economic and systemic-solvency crises of the last eight years. The issues that never were resolved in the 2008 panic and its aftermath are about to be exacerbated. Based on the precedents established in 2008, likely reactions from the government and the Fed would be to throw increasingly worthless money at the intensifying crises. Attempts to save the system all have inflationary implications. A domestic hyperinflationary environment should evolve from something akin to these crises before the end of next year (2014).
Williams finished his article with the following quote of gold:
The rise in the price of gold in recent years was fundamental. The intermittent panicked selling of gold has not been. With the underlying fundamentals of ongoing dollar-debasement in place, the upside potential for gold, in dollar terms, is limited only by its inverse relationship to the purchasing power of the U.S. dollar (eventually headed effectively to zero). Again, physical gold—held for the longer term—remains as a store of wealth, the primary hedge against the loss of U.S. dollar purchasing power.
Japanese Consumers To Become Net Buyers Of Gold Again After 8 Years
Posted by silveristhenew on July 15, 2013 No comments
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
While the largest gold ETF in the Western hemisphere is unloading physical gold, the land of the rising sun is doing the opposite. The biggest ETF in Japan has accumulated 10% of its physical holding this year. Bloombergwrites that “Japanese consumers are poised to become net buyers of gold for the first time in eight years as the yen’s decline and looming inflation drive them to seek refuge in bullion, Bruce Ikemizu, the head of commodities trading in Tokyo at Standard Bank Plc.”
Weakness in the yen driven by a huge monetary government stimulus, incited Japanese people to hedge against inflation. “Bullion is sought here as a hedge against inflation and a rout in financial markets,” Osamu Hoshi said in an interview. He is the general manager at Mitsubishi UFJ Trust and Banking Corp., which introduced the nation’s first gold-backed ETF three years ago. Bloomberg reports that the trading value in Mitsubishi UFJ Trust’s gold ETF on the Tokyo Stock Exchange amounted to 7.23 billion yen in May. It has become the most-traded commodity fund listed in Japan.
Gold is a Crap Investment—Unless...
About gold as an investment, Barry Ritholz said it best:
This is not to say gold is not affected by Macro issues. But that is very different than saying Gld has a fundamental value, an intrinsic worth. It does not. [. . .] Gold is not, and can never be, an investment. It has no true intrinsic value, no cash flow, no earnings, no coupon[,] no yield. What people call fundamentals are nothing more than broad macro analysis (and how have your macro funds done lately?). Gold is the ultimate greater fool trade, with many of its owners part of a collective belief theory rife with cognitive errors and bias. [bold emphasis in the original]
Ritholz is absolutely right: Gold does not have cash flow, earnings, coupons, or yields. Unlike, say, a factory, or a piece of land, gold cannot produce anything; gold just sits there, inert. Though it has a handful of industrial applications, and of course can be used for decoration, gold has no practical use. You can’t eat gold. You get caught in the middle of the Sahara with a ton of gold and not a drop of water? You’ll be the richest corpse in no time.
So just like Ritholz says, gold is not an investment—unless.
Unless what? Unless the fiat currency itself becomes worthless.
It is this possibility—that the novel, experimental and reckless measures being taken by the central banks of the major reserve currencies might well end up debasing the dollar, the euro and the yen to the point where they are as worthless as Weimar-era Deutsche marks—that makes mincemeat out of Ritholz’s perfectly sensible analysis.
Even if you do consider that capital, shares of stock represent a promise of repayment from future profits aka savings. Someone has to under-consume the profits of the company in order to pay off that promissory note.TSJones wrote: Trust me, shares of stock are capital.
Cloud computing is nothing more than the client-server paradime that existed since the 70s.KrishnaK wrote: If cloud computing was hype, a major chunk of internet traffic wouldn't be served from it.
You obviously don't know much about the monetary system - who controls its issuance and value thereof.Yes. Nobody's forcing anybody to do otherwise.
Acharya ji,Acharya wrote:Former US Treasury Official - The Fed Is Facing Collapse
I expect the gold price to hit $4,300 in early 2016. But the really fascinating thing here is the silver chart because there have been three peaks. we have a silver price of over $148 sometime in early 2016. It’s as clear to me as the sun rising and setting.”
Acharya ji please clarify somethings for me:Acharya wrote:Former US Treasury Official - The Fed Is Facing Collapse
I expect the gold price to hit $4,300 in early 2016. But the really fascinating thing here is the silver chart because there have been three peaks. we have a silver price of over $148 sometime in early 2016. It’s as clear to me as the sun rising and setting.”
Manish_Sharma wrote:
Acharya ji please clarify somethings for me:
1.) Is gold and silver going to rise because of their own value?
2.) Or because of Feds/US/treasurery etc's house falling like pack of cards & dollar becoming so weak that the price of gold and silver will rise due to dollar's weakness?
3.) Is this gold and silver price going to grow in Bharat also in same proportion as US?
Yes, and the internets is just a different mail system, maybe even a bunch of tubes. New jargon and all.Austin wrote:Cloud Computing is just a jargon where Companies Reinvent the old thing in a new Avatar by giving new names to it , If it succeeds then Cloud is a success else next year they will get a new jargon for the same stuff.
Theo_Fidel wrote: This is classic Indian failure to innovate attitude problem. No new idea comes from this great land mass, except buy more gold....
Quoted once and re quoted twice for Posterity. Bravo!!Acharya wrote:Theo_Fidel wrote: This is classic Indian failure to innovate attitude problem. No new idea comes from this great land mass, except buy more gold....
I respectfully disagree. Look at the recent high demand for gold. What preceded it? High inflation. I agree some of it is pure preference. However, people also realize what happens when the central government open the spigot of cash. The value of Rupee declines. The gold demand goes up everywhere in the world when there is inflation expectation. Indian demand is rather small factor in gold price. The recent run-up (last 3 years) was driving by inflation expectations around the world. The gold demand in India also show that people really trust the current government to mess up the economy and they want to protect themselves using gold.Theo_Fidel wrote: This is classic Indian failure to innovate attitude problem. No new idea comes from this great land mass, except buy more gold....
Totally Agree with you. But I do comprehend why Indians have this undying love for gold. Faced with a capricious government, of UPA-2 likes, they seek safety of their capital which can only be given by gold and to a certain degree by real estate. Even though both are bad for the country.panduranghari wrote:Quoted once and re quoted twice for Posterity. Bravo!!Theo_Fidel wrote: This is classic Indian failure to innovate attitude problem. No new idea comes from this great land mass, except buy more gold....
It's great to see the positive responses by Russians to this article. Ditto for when there was an article about China exceeding US in PPP GDP in a few years - both received positive comments. But when there was a discussion here recently on India being the 3rd biggest economy by PPP GDP, there was a bunch of folks jumping up and shouting that we're ranked lower on absolute dollar terms, PPP doesn't matter, etc etcAustin wrote:Russia breaks into top 5 world economies, displacing Germany India Ranks 3rd on PPP basis
They want India to be on top, so it's kinda natural human reaction isn't it?Suraj wrote:It's great to see the positive responses by Russians to this article. Ditto for when there was an article about China exceeding US in PPP GDP in a few years - both received positive comments. But when there was a discussion here recently on India being the 3rd biggest economy by PPP GDP, there was a bunch of folks jumping up and shouting that we're ranked lower on absolute dollar terms, PPP doesn't matter, etc etcAustin wrote:Russia breaks into top 5 world economies, displacing Germany India Ranks 3rd on PPP basis
I feel like we should focus on the big stuff like government policy and then we'll have huge improvements and little sh*tty improvements depending on where you live. Free up the public sector, competitive university system, streamline taxes, fiscal responsibility and low inflation, etc will do a lot to improve confidence in the rupee and the economy as a whole. Perhaps then we'll witness a slowdown in gold purchase and more innovation. I'm not sure what the cause of your rant is.Theo_Fidel wrote:(start rant)
For gods sake folks..
The world economy is so massive today that a better shoe lace will be $ Billion type business. This is reality. A 2% better way to do computing will destroy companies that don’t have access to this advantage. If cloud computing is so simple whyfor did it not come out of India, huh! Because of the stick in the muds, fencing sitting, jackass, hyena gas bags who ridicule every Indian who has innovated even a little bit through history. Who knows what will be the next innovation, not you or not me, but you should have a couple of hundred or thousand innovations going on and see what takes off. For this you have to be open to new ideas and willing to put it to work for you. For every 10 ideas you try out maybe only 1 works. That is a pretty good strike rate IMO. Cloud computing improves my productivity by about 5%. In this hyper competitive economy this is a killer app for me. What is so hard to understand about this. Client calls me at 345pm and asks for a change. Previously it would take me till the next day to get modeling data back to him. Now I can get it to him be 430pm same day. He is thrilled. Who do you think gets hired next time.
When I began in India everything was done on a sheet of paper with paper and pencil. An engineer dutifully used a slide rule to calculate all the stresses, and the we would multiply by a factor of 5 and select a section out of the 1901 Bethlehem steel catalog. I still remember the day the first scientific calculator showed up, folks pooh poohed it as just another hype, threw it into the drawer and went back to the past. Recently I visited a most prestigious engineering company in India, and discovered that the technology they used has not changed in 40 years! For instance I have commented many times here that the technology being used for the Metro viaducts is quite old and I suspected that the structures were roughly 200% more massive than required for whatever reason. Every time you see the foot path crumble, the road fall apart and the water pipe burst in India, it due to this attitude.
Every time the streets flood, building crumbles, it is due to this same lack of attention to detail and accepting new ideas that are used around the world. For instance our survey and civil engineering capability is 40 years behind everyone else and so our streets flood at the first sprinkling and our roads are built atrociously. Also for instance I have pointed out that from our coal production and generation there should not be any power shortage in India. The problem is we burn our coal horribly inefficiently, we don’t transmit it using the latest technology, we use terribly engineered products and wonder why our electricity runs out. Everyone is waiting for a friggin miracle bullet to solve everything when the truth is tiny little incremental changes and improvements are what built the first world.
Focus on the little $hitty improvements folks and the big stuff will take care of itself.
(end rant)
Neshant wrote:Cloud computing is nothing more than the client-server paradime that existed since the 70s.KrishnaK wrote: If cloud computing was hype, a major chunk of internet traffic wouldn't be served from it.
The marketing departments of network companies came up with a new fancy term to describe the same old.
Network companies ? I'm sorry but what you guys are saying is nonsense. Also off topic.Austin wrote:Cloud Computing is just a jargon where Companies Reinvent the old thing in a new Avatar by giving new names to it , If it succeeds then Cloud is a success else next year they will get a new jargon for the same stuff.
U.S. debt to China rose to a record $ 1.3 trillion. As reported by the Xinhua News Agency, this was achieved through the acquisition of Beijing U.S. Treasury in the amount of 25.2 billion dollars in May of this year
"From the point of view of safety of U.S. bonds remain one of the most attractive financial instruments. Recovery of the U.S. economy strengthens the dollar, which is also a positive factor," - quoted by local experts.
China has become the main creditor of the United States in September 2008, surpassing Japan. Then buying dollars and U.S. government bonds has allowed Beijing to avoid the appreciation of the yuan and to support Chinese exporters.