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 Replies: 18 / Views: 2,448 |
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Pillar of the Community
United States
1228 Posts |
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Pillar of the Community
United Kingdom
616 Posts |
Not sure people can give a thoughtful answer without a timeframe.
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Pillar of the Community
United States
1454 Posts |
Nope. Gold has been stuck in a fairly tight channel since Spring and has lost a great deal of ground from the highs of 2011. Until the world economy shows signs of a revival, I'd remain on the sidelines.
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Pillar of the Community
Canada
1502 Posts |
In my layman opinion, gold is kept low due to the high US dollar against a very weak Euro. Once investors realize North American ain't doing so hot either, gold will climb
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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
36800 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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Replies: 18 / Views: 2,448 |
Posted 08/20/2012 12:40 am
