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 Replies: 18 / Views: 2,454 |
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Pillar of the Community
United Kingdom
2624 Posts |
In the short term I expect gold to be on a downwards trend for a while...in the mid to longterm I think it is still good.
Thats my view, I have been wrong before in the past :P
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Bedrock of the Community
United States
36878 Posts |
With 16 Trillion dollars (and climbing) in U.S. debt that can never be paid and the Euro Zone falling apart with Greece, Spain, Italy, Portugal, Ireland, and others broke and in need of more bail out, how could you not be bullish on gold? The fiat currency game is falling apart.
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Pillar of the Community
United States
863 Posts |
yes I just hope it lasts long enough for me to be able to accumulate PM's.
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Bedrock of the Community
Australia
21788 Posts |
Why can't the debts of the debt ridden countries, be cross cancelled against each other, as much as possible?
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Pillar of the Community
United States
808 Posts |
A very reasonable suggestion, sel.
My guess is that no government is willing to own up to exactly how much debt they owe just like no central bank wants to own up to exactly how much pixie dust they've printed.
Oh, and there's also the powerful influence of private sector debt holders. Governments quite likely could cancel out each other's sovereign debt. However, asking the banks and large hedge funds to give up their handsome profits "for the good of all" would likely result in undesirable political consequences for the current office holders.
Edited by coinwatch
08/20/2012 12:31 pm
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Pillar of the Community
United Kingdom
616 Posts |
Sel, think the answer is because most of the debt is held by large institutions like banks not other countries. I don't think debtor nations hold the debt of other debtor nations. In the United States I believe somewhere around $10 trillion of the debt is held by Americian citizens or is interagency debt. If I remember correctly the largest individual holder of that debt is the Social Security Trust fund.
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Pillar of the Community
Canada
3692 Posts |
If debts around the world get cancelled out, isn't that just a bailout by any other name? I mean, if I'm in the clear debt-free and my neighbor gets a free ride on his late mortgage, how is that fair?
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Pillar of the Community
United States
808 Posts |
Quote:
how is that fair? It's not fair at all. |
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Pillar of the Community
United States
1454 Posts |
Quote:
However, asking the banks and large hedge funds to give up their handsome profits "for the good of all" would likely result in undesirable political consequences for the current office holders.  Politicians tend to focus their efforts more on fundraising and campaign reelection than issues that might attract the attention of the profession assassin. After studying the baby-kissing breed at length, I've discovered that being memorialized on local coinage isn't really a popular life goal for most civil servants.  The observance of Jubilee was once considered something of an 11th commandment in Old Testament times; but the practices seems to have fallen out of favor for some reason.  After the next big war, the concept might gain some traction, though. |
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Pillar of the Community
United States
4008 Posts |
Quote:
If debts around the world get cancelled out, isn't that just a bailout by any other name? Yes, it is. Quote:
I mean, if I'm in the clear debt-free and my neighbor gets a free ride on his late mortgage, how is that fair? That would not be fair. The good news is that it is unlikely as well. Debts that might be canceled between nations would be of the sovereign type debt, which is usually just their form of treasury bonds. If we get to the point that sovereign debts are being wiped clean, we are WAY past any notion of fairness and WELL into merely surviving as nations. This is happening in Greece these days. It will happen in other countries once those in power recognize that their debts are too big to pay and not declaring bankruptcy is holding them back. Greece would have been much better off to have declared bankruptcy a year or more ago, repudiated their debts, left the EU, and reinstated the drachma. Doing that would have been bad for the banksters, though, so we have to muddle and fuddle with the situation for a few years before the ax finally drops on the whole sordid mess. |
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Valued Member
Canada
491 Posts |
@starbuxinvestor Yup, you're right. A lot of the debt is held by sovereign and private retirement funds as well as Hedge funds. Long term debt is meant to fund future obligations, so our children will have to pay more in taxes to fund our retirement benefits. It's a moral dilemma, do we want our children to have less in the future so we can have our lifestyle maintained during our golden years? GOT GOLD?  |
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Pillar of the Community
United Kingdom
616 Posts |
I think people in general are unaware of how much of the National Debt is held domestically probably because of the constant noise around China's holdings.
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Pillar of the Community
United States
808 Posts |
 Which is sad because reliable information on our current (and ever increasing) national debt is so widely available today from numerous sources. I also find it sadly humorous when I hear people saying we shouldn't anger China because they might stop buying our debt...when in reality China has actually been a net seller of our treasuries for a while now. |
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Valued Member
Canada
491 Posts |
Last time I checked the countries that were increasing their purchases on treasuries was Canada, the UK and Japan. This was sovereign buying and the increases were above 50% for each country over the course of a year, I think it was around January or February 2012 that I came across that data.
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Pillar of the Community
United States
4008 Posts |
Last data I saw on US Treasury paper purchases showed that The Federal Reserve System was buying 72% of them. Ten years ago, the Fed wasn't buying ANY of them. The bond market was gobbling them up as they became available and both foreign and domestic investors had a healthy appetite for US gov paper. For the past couple of years, though, US government bonds have been difficult to sell. When PIMCO turned away from buying US public debt that was one heckuva signal to the entire bond market. A rejection like that from those who know bonds as well as or better than anyone else was quite a wake-up call... at least, for everyone outside of DC, that is. |
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Replies: 18 / Views: 2,454 |
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Posted 08/20/2012 07:53 am
