financial armageddon 2014

[frenchbriefs]

gold or silver based currency is a relic,it doesnt work as proven by hundreds of years of financial history....in fact gold based currency is more likely to restrict the economy and cause a recession....

fiat based currency allows the government to control the economy with the balance of a finely tuned MIG29 fighter jet.....during a recession,when banks arent loaning and people arent spending causing a liquidity crunch,government can print and inject more money to help boost trade and simulate the economy,then when the economy is recovered again,government can slowly reduce the amount of currency in circulation to remove excess inflation and lower interest rates....

with the gold based dollar,government cant do that,the minute the people sense the economy is in trouble and the government is going to start printing,they will be rushing to exchange their paper money for gold....this will cause the country's gold reserves to be depleted very fast.worse still most of the gold will end up in the hands of rich individuals which means power will be concentrated in their hands and they will make ur lives a living hell.

gold money=no no,rich people demand gold for payment,other countries demand gold for trade goods=wealth being sucked right out of your country.

cycle says that our current monetary system is reaching its end.

with BRICS forming the new IMF-ish bank backed by real assets(namely Gold, Silver, oil, gas). I dont see how fiat money are going to survive against it without a world war.

Even in Mexico, Hugo Salinas Price says they are 2-4 votes away from backing the Peso with silver.


I know not all here agree with me. but I have always emphasized that Gold and Silver are money. Hence the 0% interest returns, I mean...with the recent ECB's NIRP....0% returns issnt that bad now eh?

We have been living a fiat lie for the past 4 decades....since Nixon delinked the dollar from Gold. If you do not look further back into the past for cycles, you risk losing all you have today.

This is my view, and you do not need to agree with me, just sharing my thoughts

 

[bakuten]

gold or silver based currency is a relic,it doesnt work as proven by hundreds of years of financial history....in fact gold based currency is more likely to restrict the economy and cause a recession....

fiat based currency allows the government to control the economy with the balance of a finely tuned MIG29 fighter jet.....during a recession,when banks arent loaning and people arent spending causing a liquidity crunch,government can print and inject more money to help boost trade and simulate the economy,then when the economy is recovered again,government can slowly reduce the amount of currency in circulation to remove excess inflation and lower interest rates....

with the gold based dollar,government cant do that,the minute the people sense the economy is in trouble and the government is going to start printing,they will be rushing to exchange their paper money for gold....this will cause the country's gold reserves to be depleted very fast.worse still most of the gold will end up in the hands of rich individuals which means power will be concentrated in their hands and they will make ur lives a living hell.

gold money=no no,rich people demand gold for payment,other countries demand gold for trade goods=wealth being sucked right out of your country.

I hope you are joking when you say "then when the economy is recovered again,government can slowly reduce the amount of currency in circulation to remove excess inflation and lower interest rates"


Have you ever heard of a govt reducing its currency supply since this wonderful fiat monetary system you described came into use since 1971?
How much has that dollar in your pocket been devalued since then?

Give a govt the power to create money(unbacked), and expect it to not inflate is a dream.

history has shown that that people cannot be trusted with this sort of power.

Fiat re-distributes wealth from the most productive parts of the society to the least productive parts through the insidious action called inflation. Not to mention, it punishes savers while encourages people to get into debt as well.

having an honest money system prevents that and does not allow the govt or people to overspend what they do not have and expect others to pickup their tab.

 

[Knight_Rider]

there is a thing known as cycle... stock too expensive can look into other form of investment ba...

from what i can see, precious metal seem to be quite low.

there is also alter investment like high end Toys or wine.

i park my 60% mostly in NZD, vomited when it drop lately T_T... at least i still got my job and my health.

i recommend 60:40, 60% investment, 40% saving... i waiting to dump my 40% when there is a crush

Kiwi will continue to drop. The zhong one has come out to say overvalue. I'll pick up at 0.8450, 0.8330 and showhand at 0.7980.

 

[frenchbriefs]

its always possible to reduce the amount of money in circulation....by forcing the banks to increase the fractional banking reserve ratios.....or by taxation or by controlling the money supply.....

many 1st world developed countries have strong stable currency,why is that?they have control over the money supply.....their government central bank issue money prudently and conservatively.....the only example ur talking about is USA which is very complicated......USA is a very ****ed up place....

inflation punishes savers and encourages people to get into debt,not true,it punishes the poor and the stupid,rich people love inflation,it makes them richer....inflation eats away debt quicker and the rich often has millions or even hundreds of millions of debt.....lets say inflation is at 8%,in 5 years time inflation would have reduced the value of their debt by over 40%($10 million debt would only be worth 6 million) and increased the value of their hard assets by over 40%,increasing their networth by over 80%.....

i hope you havent been watching too many of those gold infomercials by mike maloney....they make u stupid and misinform you,that guy is a gold salesman although a very good one.....appearing to educate people while making money off gullible fools.....he only exist to peddle his gold website....

watch this instead.....it will teach u the history of a gold based economy throughout mankind and why GOLD is the devil's playtoy.....let me tell u there would be nothing better for the rich individuals and rich banks to go back to a gold based economy so they can strangle the crap out of u.

I hope you are joking when you say "then when the economy is recovered again,government can slowly reduce the amount of currency in circulation to remove excess inflation and lower interest rates"


Have you ever heard of a govt reducing its currency supply since this wonderful fiat monetary system you described came into use since 1971?
How much has that dollar in your pocket been devalued since then?

Give a govt the power to create money(unbacked), and expect it to not inflate is a dream.

history has shown that that people cannot be trusted with this sort of power.

Fiat re-distributes wealth from the most productive parts of the society to the least productive parts through the insidious action called inflation. Not to mention, it punishes savers while encourages people to get into debt as well.

having an honest money system prevents that and does not allow the govt or people to overspend what they do not have and expect others to pickup their tab.

 

[bakuten]

its always possible to reduce the amount of money in circulation....by forcing the banks to increase the fractional banking reserve ratios.....or by taxation or by controlling the money supply.....

many 1st world developed countries have strong stable currency,why is that?they have control over the money supply.....their government central bank issue money prudently and conservatively.....the only example ur talking about is USA which is very complicated......USA is a very ****ed up place....

inflation punishes savers and encourages people to get into debt,not true,it punishes the poor and the stupid,rich people love inflation,it makes them richer....inflation eats away debt quicker and the rich often has millions or even hundreds of millions of debt.....lets say inflation is at 8%,in 5 years time inflation would have reduced the value of their debt by over 40%($10 million debt would only be worth 6 million) and increased the value of their hard assets by over 40%,increasing their networth by over 80%.....

i hope you havent been watching too many of those gold infomercials by mike maloney....they make u stupid and misinform you,that guy is a gold salesman although a very good one.....appearing to educate people while making money off gullible fools.....he only exist to peddle his gold website....

watch this instead.....it will teach u the history of a gold based economy throughout mankind and why GOLD is the devil's playtoy.....let me tell u there would be nothing better for the rich individuals and rich banks to go back to a gold based economy so they can strangle the crap out of u.

Stable currencies? All these currencies u talking about are stable relative to each other. But going down against gold and silver.

They are all losing purchasing power in real world terms. Why? Cuz everybody is racing to debase against the dollar in order to keep their economies competitive.

And since the rich are usually in power. U can be damn sure nobody will want banks to deflate as it would make debts cost a lot more to finance. So they have all the incentive to inflate all the like and steal from everybody who is saving in that currency.

Thomas Jefferson has already predicted the outcome of a fiat system.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

The power to issue currency is the power to destroy. Hence having an asset based is the best way to prevent such things from happening.

like what i said. Gold & Silver. not Gold alone, as you have pointed out...gold alone will be played by the ultra rich.

maybe all these are not even the answer....Maybe Bitcoin is the answer. Decentralized form of interest-free currency creation could well be the answer.
Giving any single entity the power to issue currency is definitely out...sooner or later they will be taken over by people with motives.

 

[frenchbriefs]

i believe thomas jefferson is ranting against private institutions controlling the supply of money,because in those days,america's money supply was controlled by private banks and institutions.....he wanted the establishment of
a central bank under the control of the government....i quote "the issuing power should be taken from the banks and restored to the people" he did not ask for the issuing of fiat money to be stopped,only who controlled the issuing.

do u know thomas jefferson was one of the early adopters of fiat currency and took america off the gold based economy for a short while?the economy boomed like crazy and the depression stopped until they went back to gold currency again.

watch the goddam documentary.....

currencies going down against gold and silver?are u living in 2012?look at historical gold charts for christsake,gold has never gone anywhere in the last hundred years except occasional spikes when there was periods of high inflation.

now u said gold may not be the answer,maybe its bitcoin,you have no idea...im telling u fiat currency is the answer....watch the goddam documentary,its how u issue it and how much u issue...thats the answer

and bitcoin is decentralised??its another goddam manmade currency,if u make it popular and widespread enough wont it become centralised?anyway bitcoin is worse than gold......the supply of bitcoin is so limited that even gold is more plentiful......gold is 10 ^7 times more than bitcoins,any currency that is limited is easily controlled,any currency easily controlled is easily manipulated to cause market fluctuations....look at how unstable bitcoin is,one moment its $30 the next its more than $200 and the next its back down to $60.

I think u are the one in dreamland. Stable currencies? All these currencies u talking about are stable relative to each other. But going down against gold and silver.

They are all losing purchasing power in real world terms. Why? Cuz everybody is racing to debase against the dollar in order to keep their economies competitive.

And since the rich are usually in power. U can be damn sure nobody will want banks to deflate as it would make debts cost a lot more to finance. So they have all the incentive to inflate all the like and steal from everybody who is saving in that currency.

Thomas Jefferson has already predicted the outcome of a fiat system.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

The power to issue currency is the power to destroy. Hence having an asset based(not backed) is the best way to prevent such things from happening.

like you said...Gold might not be the answer....Maybe Bitcoin is the answer. Decentralized form of interest-free currency creation could well be the answer.
Giving any single entity the power to issue currency is definitely out...sooner or later they will be taken over by people with motives.

 

[bakuten]

i think we are in agreement here.

Money we need has to have the following properties:

1. Interest free
2. Store of value(carefully controlled money supply, but by who?)

the problem now is who should determine how much money should be created into the economy. History has shown that such powers will always be abused.

so could Bitcoin really be the solution? lol
let me explain on bitcoin.


here's some of bitcoin's properties and problems:

- bitcoin can be broken down into 100 million fractions called satoshis.
- can only be tempered with should somebody control greater than 50% of the processing power of the network. However...if you control so much power...u will earn alot of bitcoins from mining it as well...making it an incentive not to compromise the network. Besides...the network is open to inspection at any time.



1 problem with bitcoin is with early adoptors owning alot of it. Just like how the rich owns alot of gold.

 

[bakuten]

i believe thomas jefferson is ranting against private institutions controlling the supply of money,because in those days,america's money supply was controlled by private banks and institutions.....he wanted the establishment of
a central bank under the control of the government....i quote "the issuing power should be taken from the banks and restored to the people" he did not ask for the issuing of fiat money to be stopped,only who controlled the issuing.

do u know thomas jefferson was one of the early adopters of fiat currency and took america off the gold based economy for a short while?the economy boomed like crazy and the depression stopped until they went back to gold currency again.

watch the goddam documentary.....

currencies going down against gold and silver?are u living in 2012?look at historical gold charts for christsake,gold has never gone anywhere in the last hundred years except occasional spikes when there was periods of high inflation.

now u said gold may not be the answer,maybe its bitcoin,you have no idea...im telling u fiat currency is the answer....watch the goddam documentary,its how u issue it and how much u issue...thats the answer

and bitcoin is decentralised??its another goddam manmade currency,if u make it popular and widespread enough wont it become centralised?anyway bitcoin is worse than gold......the supply of bitcoin is so limited that even gold is more plentiful......gold is 10 ^7 times more than bitcoins,any currency that is limited is easily controlled,any currency easily controlled is easily manipulated to cause market fluctuations....look at how unstable bitcoin is,one moment its $30 the next its more than $200 and the next its back down to $60.

still watching. i do understand what it is trying to point out.

Problem with fiat is that it is still under man's control. How can you entrust man with money creation? Sooner or later it will become what it was created to fight against when people hijack it. Rob people again First thru inflation, then thru deflation.


*edit* finished watching. Good points by the vid. But an unbacked currency still will not solve the problem of competition to debase between countries to make themselves more competitive.

it will work great in a small local community like the Dakota bank. But it does not address international concerns. bank of japan tried the stunt last year...look what happened to them? Yen is down 30% and their economy doesnt look like improving.

 

[focus1974]

I think Fiat currency is fine. We just need to recognise it is man-made and will cause inflation over time with deflation occassionally.

As long as the fiat system is in place, we just need to base investment decision based on the fiat system. We can't change the system, we can only invest within the constraints.

Gold/Silver is just a form of "piece of mind" for people to own something that could be used in a chaotic world. That's why most portfolio only recommend 5-10% of your networth towards the precious metals.

 

[guowei]

cycle says that our current monetary system is reaching its end.

with BRICS forming the new IMF-ish bank backed by real assets(namely Gold, Silver, oil, gas). I dont see how fiat money are going to survive against it without a world war.

Even in Mexico, Hugo Salinas Price says they are 2-4 votes away from backing the Peso with silver.


I know not all here agree with me. but I have always emphasized that Gold and Silver are money. Hence the 0% interest returns, I mean...with the recent ECB's NIRP....0% returns issnt that bad now eh?

We have been living a fiat lie for the past 4 decades....since Nixon delinked the dollar from Gold. If you do not look further back into the past for cycles, you risk losing all you have today.

This is my view, and you do not need to agree with me, just sharing my thoughts

the new IMF show no sign of being back by any oil gas gold silver or anything... source of your report?

think Russia using the mini IMF to by pass USA sanction and continue with their land grabbing. China just want to by pass USA for everything. the rest of the 3 countries are so credit hungry after USA tapering they would agree to mini IMF so to eat more credit

 

[guowei]

Kiwi will continue to drop. The zhong one has come out to say overvalue. I'll pick up at 0.8450, 0.8330 and showhand at 0.7980.

aiya everyone say their currency is over valued. see also sian liao, i just keep stacking nzd whenever it drop 10cent

have more faith in NZD than SGD sia, converting my man power currency to cow power currency. NZ have more cow than ppl!

 

[Knight_Rider]

If tonight ADP NFP is good news then good to pick up at 0.8450 around the day 200 MA.

Hahaha yeah very profitable carry trade. Earns more interest then our banks and CPF put together.

aiya everyone say their currency is over valued. see also sian liao, i just keep stacking nzd whenever it drop 10cent

have more faith in NZD than SGD sia, converting my man power currency to cow power currency. NZ have more cow than ppl!

 

[bakuten]

here's some counter-argument to monetarists.

 

[uncle168]

I have a strange feeling the fed will end qe3 tonight and announce an immediate rate hike

keekeekee

 

[uncle168]

25 basis points hike

 

[uncle168]

inflation is going to trigger this sudden rate hike by 25 basis points to 0.5%

100% cash position awaiting yellen jie jie to pull the trigger to end qe3 and raise rates at the same time

 

[uncle168]

ocbc holding up the entire sti

inverted hammer by 4pm

then below ma200 and ma50

testing

9.00

8.08

wing hang = dao heng

 

[uncle168]

once sudden news of full withdrawal of qe3 + 25 basis pt hike

liquidity will drain out of asia overnight

tomorrow morning local banks will run out of USD when the NIKKEI 225 opens, the right shoulder form and gap down 3000pts to 12,600 sending shockwaves across the SSE, HSI and STI

N225 -3000
HSI -5000
STI -400

hell freezes over

US$1.30
RM2.44

 

[Knight_Rider]

I have a strange feeling the fed will end qe3 tonight and announce an immediate rate hike

keekeekee

I like to believe too but their debt problem I think 3 generation also cannot clear.

 

[uncle168]

imagine the world is shitting using the US toilet paper

then suddenly yellen shout, i will offer 25 basis point more for US toilet paper

immediately your father will take all the toilet paper and sell to yellen

then you will be shitting without toilet paper

the local banks will be full of **** and no toilet paper

keekeekee