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Pillar of the Community
United States
4008 Posts |
Thanks for the link, BiggFredd. I agree with the message in the video and bookmarked that site for further reading / viewing. Also agree with Mitch on this. Silver is not in a bubble now... but the dollar sure is. The dollar is very weak now but it has not sunk to its real level of value because, well, it IS the dollar! If I had any confidence in the Federal Reserve or the US government to manage the dollar properly, I would not be collecting bullion now. They have shown no interest whatever in strengthening the dollar, only in weakening it. I understand why they are doing this but believe that the cure they seek is worse than the disease. Since I cannot exercise any control whatever over the dollar, all I can do is protect the savings that I have by investing in things that do not depend on government competence to have and maintain their value... and dollars are definitely NOT it!  |
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Pillar of the Community
United States
3670 Posts |
When I was in silver shop today, the T.V. news was talking about everything going up in price, from diapers to coffee, and the rising cost of oil was the core reason for the inflation.....
The alarming part of that video to me, was the chart which showed the dollar level in 2008, and to see the dollar looked to be just a smudge under that mark from 2008, currently today. That should speak of just how serious this economy situation is with inflation, debt, and the constantly falling dollar....
Edited by Silverhawk74
04/26/2011 4:04 pm
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Pillar of the Community
United States
4008 Posts |
 , Silverhawk. How Bernanke can go on TV or in front of congress and say with a straight face that the rise in commodity prices is not linked to the falling value of the US dollar is simply beyond me. I'd be willing to bet money that he also does not believe that printing trillions of extra dollars has anything to do with the falling value of the dollar! Does he really believe this nonsense or does he know the truth of it and is attempting to cover it up? Either way, I hope that the next Fed chief does a much more credible job. |
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Valued Member
United States
71 Posts |
I can't remember where I read it, but I liked the analogy. When our elected officials were squabbling over a few billion dollars in regards to a trillion dollar budget deficit, they said it was like two guys on the Titanic arguing over the dinner check. That pretty much sums up Washington!  |
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Pillar of the Community
United States
648 Posts |
Thanks for the link biggfredd - interesting perspective.
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Rest in Peace
 United States
9104 Posts |
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that sounds familiar. Do they trade in gold or silver? Weiss is mainly an an advisory service, with various programs and prices. There are also various free email notifications, hoping you'll pay for more precise info. Sean Brodrick and especially Larry Edelson follow the PM markets. I'm glad several people have found this useful. |
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Rest in Peace
United States
9104 Posts |
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How Bernanke can go on TV or in front of congress and say with a straight face that the rise in commodity prices is not linked to the falling value of the US dollar is simply beyond me. He either flunked econ 101 (inflation is caused by more dollars chasing the same amount of goods and services) or thinks we did. When the price of almost everything rises, that's inflation, I don't care how you analyze or sugarcoat it. |
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Pillar of the Community
United States
4008 Posts |
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He either flunked econ 101 (inflation is caused by more dollars chasing the same amount of goods and services) or thinks we did. - BiggFredd After observing the "Big Boys" via TV, radio, Internet, and the print media, I can almost guarantee that the latter is correct. Bernanke is a very smart guy but he reminds me a lot of the little Dutch boy at the dike, only he has 12 holes to fill and only 11 appendages!  Quote:
When the price of almost everything rises, that's inflation, I don't care how you analyze or sugarcoat it. Absolutely... and with the price of sugar these days, that is one expensive coating! |
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Rest in Peace
United States
9104 Posts |
Price of sugar (and use of HFCS instead) is caused by gubmint. Sugar is TWICE as expensive in the US as anywhere else in the world. Caused the largest candy maker to move from Chicago to Mexico.
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Pillar of the Community
United States
4008 Posts |
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Price of sugar (and use of HFCS instead) is caused by gubmint. Sugar is TWICE as expensive in the US as anywhere else in the world. Caused the largest candy maker to move from Chicago to Mexico. Yep. They can talk the talk about free market economics but they can't walk the walk of it. Farm and producer subsidies are nothing but government interference in the free market. If it is not financially viable to grow sugar beets or cane in this country, then don't grow them here. Grow something else that does have enough value to stand on its own without the government propping it up at the tax-payers expense. |
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Pillar of the Community
United States
3670 Posts |
Coffee has doubled in price since last year, and Starbucks is trying to push those prices up, without running off the coffee heard eh. They were talking about that today after the big news conference. I think we will see this trend continue form the stores to the pumps, to every other little creature comforts taken for granite every day....
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Pillar of the Community
United States
2764 Posts |
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Pillar of the Community
United States
4008 Posts |
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This article made me chuckle.... he does have some points though! Yes, that was far enough over the top to be funny alright. Problem is, none of the things that he mentioned considered that a dollar saved is about $0.022 in real spending power after a couple of decades of routine monetary inflation. Gold has not always been a great investment and most people, even serious gold bugs, will usually admit that. Personally, I am a firm believer in diversification in my investments and not buying 5-10% PMs for my portfolio is an act of omission. We have $115 oil today not because there is a shortage of oil (our oil storage facilities are awash with the stuff) but because the dollar is worth less today than it was 6 months or a year or two ago. Those of us who do buy some PMs are well aware of the fact that a ASE or an AGE will still contain an oz. of PM tomorrow or next year, no matter what the government or the Fed does or fails to do.  |
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Bedrock of the Community
United States
10982 Posts |
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We have $115 oil today not because there is a shortage of oil (our oil storage facilities are awash with the stuff) but because the dollar is worth less today than it was 6 months or a year or two ago. This is an excellent example! When people say silver is in a bubble, and it could be, then I ask if oil is in a bubble? Basic extraction costs for one ounce of silver are around $10. Basic production costs for a barrel of oil are around $10. Today there is no shortage of either in the ground and oil is $113/barrel while silver is dirt cheap at $45/ounce! |
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Rest in Peace
United States
9104 Posts |
During German HI, a woman took an egg basket full of money to go shopping. She put it down to look at something, and when she looked back, it was gone.
The egg basket, that is. The money was dumped on the ground.
The next day, the money would be worthless, but the basket would still be a basket.
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Posted 04/26/2011 4:00 pm
