Austin wrote:Seems like Moody has downgraded 8 major HK bank over Snowden ?
http://21stcenturywire.com/2013/06/24/m ... arm-of-us/
.....and you wanna know what's funny? The banks had to pay for their rating.
Austin wrote:Seems like Moody has downgraded 8 major HK bank over Snowden ?
http://21stcenturywire.com/2013/06/24/m ... arm-of-us/
Theo_Fidel wrote:I notice the gold bugs have gone very very quiet lately....
RoyG wrote:Theo_Fidel wrote:I notice the gold bugs have gone very very quiet lately....
Nothing much happening on the gold front. Temporary drop in value in an overall increasing price trend. Everybody is accumulating.
The deficit in the federal budget will amount to about 400bn roubles in 2014 ($12bn), and in 2015 and 2016 it will grow to 500bn roubles ($15bn), according to Prime Minister Dmitry Medvedev. That is still less than 1% of GDP, which is not considered big. Slowing GDP growth is one of the main reasons for a growing budget deficit, according to Finance Minister Siluanov. The Russian government will have to optimize their budget spending to maintain macroeconomic stability, Medvedev is reported as saying.
In a nutshell, the ‘shadow’ banks borrow from China’s state-controlled banks, use the funds to finance construction projects and sell bonds tied to those projects with yields far above bank savings rates.
“The Ponzi scheme is going on with retail investors…they don’t want 1% or 2% in the bank or even less,” Rickards explains. “The quasi banks come along and say ‘we’ll give you 6%-7%-8%.’ They take the money, invest in these assets that are completely non-productive [with] no way to be able to pay off the debt.”
DhruvP wrote:Who do you propose get cheated? People who invest in promising technologies or people who try to park money to exact guaranteed returns?
Do you really think the world will go back to the ages where having saved gold coins will quadruple money somehow with you becoming a gazillionare in some set time say 15 years? If so, you're acting like a fool.
Buying stocks on their valuation based on P/Es, return on shareholders equity, return on invested capital is all gambling.
To me, with all the data available at my fingertips, investing in stocks is better than putting your trust in gold or clay.
Gold is a non-driver. Its passive wealth intended to hedge. It locks money. It retards development.
Its both ways. In India's situation, too much locking of money in gold is holding it back because (guess again) gold is a not a growth driver.
Spoken like a true gold bug! Why would the price of gold go to $100K?
What does anyone gain when they buy gold at their price?
How do you know they are not gobbling up Google or Apple? Should these companies or the global economy recover
The title is misleading.
I can see China & Russia setting up a rival to US (govt controlled) rating firms Moody's, S&P and Fitch.
But US would definitely not be setting up a rival to its own monopoly of rating agencies.
The US govt in its attempts to surpress interest rates has been coercing the above 3 rating agencies to continue with their AAA rating for US debt. S&P which tried to lower the rating from AAA to AA was made to fire its chairman just a few days after. Needless to say, the other two (Moodys and Fitch) kept the rating at AAA and did not dare lower it.
Neshant wrote:DhruvP wrote:Who do you propose get cheated? People who invest in promising technologies or people who try to park money to exact guaranteed returns?
Who's talking about guaranteed returns? How about letting the market decide what returns people should get. Investing is nothing more than GAMBLING in the stock market, real estate no matter what theory you spin. Gambling is an activity involving risk and reward. Lately the gamblers want the rewards and want to offload their gambling losses onto the rest of society.
Uhh.. why are central banks aka private banks hanging on to thousands of tons of gold while trying to force people to use to use paper money?
How do you know where the price of gold is going anyway. Have you already proclaimed yourself the all knowing oracle with the right the tell others how to spend their hard earned money?
Neshant wrote:Buying stocks on their valuation based on P/Es, return on shareholders equity, return on invested capital is all gambling.
If that's what you want to do with your (hopefully honestly) earned money, do it.
Don't go around telling others what they should be invested in.
I seem to recall when stocks tank, these losers in the stock markets are always hollering for a bailout & stimulus - i.e. expending other people's money to shore up their losses.
Neshant wrote:To me, with all the data available at my fingertips, investing in stocks is better than putting your trust in gold or clay.
Why are countries going into multi-trillions of dollars of debt & counterfeiting money to the tune of trillions to keep the stock market Ponzi scheme going, pray tell? Weren't they investing in the stock market big time prior to the 2008 crash.
Neshant wrote:Gold is a non-driver. Its passive wealth intended to hedge. It locks money. It retards development.
People buy gold or anything else for that matter with the intent of selling it down the line at a much higher price. If they do not sell it now, it is because the price to make them sell it has not been reached. Once they sell it, they acquire things they want. Again, who are you to tell other people how to manage their money ? If you want to invest in stocks, put all 100% of your money in there by all means. Just don't expect that others should be ripped via paper printing just to make your bad investments whole. Or that others should be forced into gambling on the stock market just to push your stock prices higher. Or that govt should expend the wealth of the nation and go into debt to bail out losers and rig markets. That is pure shyster-ism.
Neshant wrote:Its both ways. In India's situation, too much locking of money in gold is holding it back because (guess again) gold is a not a growth driver.
You are back to your delusion that you know what's best for an economy or where prices are headed. Greece did not get anything other than a sh8t load of imploded debt despite a booming stock market circa 2008. There were tons of fools gambling in the Greek stock market who all ended up biting the dust.
Neshant wrote:Spoken like a true gold bug! Why would the price of gold go to $100K?
I said IF it goes to 100k. Almost 60,000 paper currencies have existed throughout history and practically all have ended up being worthless - which is to say their value against just about anything is now infinity.
Neshant wrote:What does anyone gain when they buy gold at their price?
Not that I think such a move is coming against the dollar soon but gold at 100k/oz would indicate hyper-inflation. $500 might buy a loaf of bread under such a scenario. Essentially purchasing power is preserved.
Neshant wrote:Since you've already accepted that the multi-trillion dollar debts being wracked up are not going to be repaid, what do you think is the end result for many paper currencies. People are stupid to hold onto paper while its value is being eroded for the benefit of those gambling in the stock market indefinitely. And they're not going to get into the stock market Ponzi either currently being fueled by debt & market rigging rather than productive new innovations. The greater fool theory eventually runs out of fools.
Neshant wrote:How do you know they are not gobbling up Google or Apple? Should these companies or the global economy recover
How about letting the people who earned their money decide if they want to invest in gold or stocks (or anything else for that matter) ?
Neshant wrote:I'm afraid you can't seem to keep your hands out of other peoples' pocket. There is a terrible tendency to reach into other peoples' pocket and tell them how they're supposed to use their money. Its a mental disease you need to eradicate from your mind.
Neshant wrote:Any attempt to force people to use their hard earned money the way you want them to use it is tyranny. You are not some all knowing oracle who knows what stocks to invest in no matter how much you fool yourself. If all these fund managers, wealth managers, bankers and assorted scammers had anywhere near the powers of prediction & prophecy they claim to have, they would not need to "manage" other people's wealth for fees nor desperately force the paper money racket upon others. The fact that they need to resort to such shenanigans is evidence they produce nothing of value for a living and they make their living by being shysters.
Prices could slide to levels below $1,000 per ounce, investors and analysts said, with stock markets rising and scant potential for U.S. or European data or developments to reverse an accelerating move out of bullion.
In the latest move, India's central bank told rural regional banks on Tuesday they could no longer provide loans against gold jewellery and coins.
Worries about a liquidity crunch in China, the world's second-largest gold consumer, drove down share prices despite attempts by the Chinese central bank to soothe markets. Physical gold demand could be hurt by a slowdown in Chinese growth, analysts said.
India's gold imports surged in May and gold and oil imports are one of the driving factors behind India's current account deficit — when the value of imports exceeds that of exports. And the current account deficit can hurt economic growth.
CAD reached a record high of 6.7% of GDP in the last quarter and has been blamed for weakening the Indian rupee.
Read more: http://www.businessinsider.com/india-raises-gold-import-taxes-2013-6
As retail investors we need to understand that buying gold is the easiest way to hedge our portfolios against rupee depreciation, inflation and to introduce global diversification—but this should not be more than 5-10% of the overall portfolio. Equities remain the best inflation hedge over the long term—though the current point to point return numbers look dismal. But remember, equity is a long-term investment and is linked to the growth of the country. And, that democracies have a way of going to the brink, having a gun to the political head before tough decisions are taken. We’re at that point. So, stay with keeping about half the assets in equities. The rest stays in long-term, tax-friendly products that are zero risk. Anything more than that needs a financial planner who works for you and not for his commission. These are tough to find—so stay with the basics and stay safe.
It’s a parent’s nightmare: shelling out big money for college, then seeing the graduate unable to land a job that requires high-level skills. This situation may be growing more common, unfortunately, because the demand for cognitive skills associated with higher education, after rising sharply until 2000, has since been in decline.Let’s start with some basic facts. There have always been some graduates who wind up in jobs that don’t require a college degree. But the share seems to be growing. In 1970, only 1 in 100 taxi drivers and chauffeurs in the U.S. had a college degree, according to an analysis of labor statistics by Ohio University’s Richard Vedder, Christopher Denhart and Jonathan Robe. Today, 15 of 100 do.
It’s hard to believe this is because the skill required to drive a taxi has risen substantially since 1970. If anything, GPS technology may have had the opposite effect. (Acquiring “the knowledge” of London streets, as taxi drivers there are required to do, is cognitively challenging, but it may no longer be necessary.)
Not necessarily, Beaudry and his colleagues argue. They find that while wages for jobs requiring cognitive skills have declined, the shift of high-skilled workers into those jobs has depressed wages for manual workers even more.
That’s a provocative argument. Still, it may be that the Beaudry team’s results are sensitive to the way they define “cognitive” jobs and “manual” ones. Also, it’s not entirely clear how much the recent recession has influenced their results.
In any case, the findings will do little to calm the nerves of graduates who are anxious to find jobs.The cold comfort I can offer is this: Going to college may still be worthwhile -- if not to be sure of qualifying for skilled jobs, then at least to avoid the even worse prospects of those who don’t get a degree.
kmkraoind wrote:RBI had purchased 200 tonnes of gold at $1,054 per ounce, now gold is nearing $1300 mark. When RBI purchased gold in Nov 2009, USD-INR was at @46-47, now hovering at 59-60@. It means at rupee terms. Any further fall in gold prices means, RBI is at paper losses.
DhruvP wrote:The market is deciding what returns people get.
You have no substantial argument on this claim but you keep repeating it hoping it to be true. Gambling is betting on odds.
Investing is looking at P/Es, market capitalization, profit as a percentage of shareholder's equity etc that you know nothing of.
Central banks are hanging on to gold simply because people hang on to gold.
Its just not possible simply because there is not enough gold on this planet to support the new monetary structure.
Also, attacking me only shows that you have no substantial case for gold except to run to it because there is a credit crisis.
Based on this, you are intentionally misleading others to park all their money into gold
Do you have any idea of who got the bailout? It was not the people invested in the stock market. It was the people invested in derivatives of real estate.
Countries went into trillions of dollars of debt due to various factors: ageing population that cannot support the social security system,
banks lending to people that were not creditworthy to buy a house, banks packaging those loans and stamping them with AAA labels and selling them off to one another to keep themselves safe. Nowhere did the stock market come into picture.
When you say a price, you have to justify why that price can be reached.
I don't see any signs of hyper-inflation in the US.
If anything, the economy looks like it will go into a double-dip if the Fed stops purchasing. I can see signs of deflation everywhere in the US.
People are getting into the stock market like crazy. They are selling bonds like crazy.
Who is not letting the people decide where they want to invest?
Fund managers, wealth managers have a disclaimer that says investing in stock market and commodities have risks associated with them.
Some of the Central banks of the more indebted nations may be tempted to liquidate part of their gold holdings and thus further depress the gold market. He points specifically to Cyprus where a report that it might sell a small fraction -- some €400 million ($520 million) -- of its gold reserves may have contributed to triggering a 13% fall in gold prices in April. Countries like Italy, which has massive gold reserves (above $130 billion), could be similarly tempted, driving down prices
Thailand is selling 150 tons of gold. SriLanka is selling 200 tons, HK is selling another 100 tons
TSJones wrote:"The only fair monetary system is one in which the people who earn the wealth get to decide what the medium of wealth preservation and exchange should be. Not someone who decides for them it should be gold or anything else."
in other words what you want is a barter economy.
Now they are not only forecasting a U.S. dollar and bond crisis and a global financial crisis in 2013, but saying that it will more than likely surpass the one in 2008 substantially.
"The US is close to stall speed and another recession. China is slowing down. Europe is in recession. All the emerging markets are slowing down. Then there is the potential war in the Middle East, a perfect storm... and the same policy bullets are not available as in 2008..."
Shanghai. June 28. INTERFAX.RU - China will accelerate the liberalization of the yuan, but the process will be flexible, said the People's Bank of China (PBOC) Governor Zhou Xiaochuan.
"The process of making the yuan convertible currency on capital account will be accelerated," - he said, speaking at a financial forum in Shanghai on Friday.
The head of China's Central Bank has not given any specific guidance on the timing, but noted that the plan for the twelfth five-year plan already laid indication of the gradual opening of the capital account, which includes investment. Yuan has a convertible currency on the current account, which includes trade.
Zhou Xiaochuan said that the PBC will continue to implement a prudent monetary policy. He noted that the Central Bank has a variety of tools for the correction of the level of liquidity to stabilize markets.
Theo_Fidel wrote:Cash cost for mining gold by different companies. 2012 Cash cost. $500-$1200 type range. There are many mines that are still at $300/oz.
Should we not also take into account the production of cost of extracting gold from anode slime that remains after smelting of copper? My impression is that this is a major source of fresh gold output in the world. Chinese gold production comes primarily from copper production. The sterlite plant in Tuticorin produces roughly 25 tonnes of gold from the slime that it exports to its subsidiary company in Dubai which converts it into gold. Hindalco's copper plant too has a gold refinery in Dadra Nagar haveli. The extraction cost of gold from anode slime is way below that of current gold prices and hence will keep flooding the market.
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