WARNING ! Gold at $1224.10 and rising fast.. Chinese dumping US DOLLAR !!

Originally posted by thewind
reply to post by TrueTruth

 

"And the example you gave, fertilizer, rose due to supply/demand issues, not currency issues. "
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I am not disagreeing with you about hyperinflation per-say, I am disagreeing with you on the fact that hyperinflation is and can be both sporadic and scattered.

The fertilizer issue I used, I used that one because fertilizer was not a supply and demand issue at all. Fertilizer went up because the cost of fuel, material to make the fertilize with, and state and federal taxes went up on the purchase price at the local distributors by more than 450%. The farmers actually used less fertilizer. So, that sorta trumps the demand versus supply that you tried to impose because eventhough less fertilize was purchased, the purchase price has never dropped!

You say the currency issue was not a factor? Sorry to burst your bubble there, but it was, for the supplier of the nitrogen was china and south america for the eastern seabooard where I live here in virginia.

Now to address the gas issue you tried to exemplify. Your figures were way off because there was no steady influx of a reduction or an increase. What you displayed there was simply a conundrum of fictional gas pricing wars that is typical when local stations are battling their competitors.

The price of oil is what controls gas prices, and the euro is the mainstay of the petro dollar right now, to which the american dollar is worth less than right now. While I applaud your effort to try and maneuver around my point, I am not in disagreeent about hyperinflation overall with you, it's just that you're diasgreeing with me on the targeted areas of this monster, which make it just what I said it was, sporadic and scattered.

The reason I know quite a bit about the farming issue here is the fact that I am a farmer, and nowadays farmers must take classes on not only the ag business in general, but they gotta pay close attention and recognize the fluxuations of economics in order to make their business more profitable.

They watch the chicago exchange just as much, and if not more than the idiots on wallstreet do. Matter of fact, just a few months ago, hyperinflation in operating overhead was the topic of the last farmers co-op meeting. It was discussed at how targeted inflation played a key role in the buying and selling of beef cattle, which is a large part of why cattle prices are down right now. But hey, what do I know, I'm just an ole goober!

re- retilizer. you have to think globally to understand the rise in demand, which is not debatable. rise in materials costs, are ALSO related to rise in demand. and even if it were other reasons, such as you stated, that's still not hyperinflation, or even inflation, because none of those reasons are the printing of currency. oh ya - china's currency is pegged to the dollar, so this currency concept again, is simply false.

how is the euro the "mainstay" of petrol prices now? oil is still mostly traded in dollars. this is just wrong, as is this continuous insistence of yours that anything you are talking about is in any way related to inflation, let alone hyperinflation.

i can't have this conversation any more. it's like talking to a tree about movies.

Originally posted by thepixelpusher
You guys whet my appetitie to join a finance forum to learn more past what is discussed here. Any financial forums I can join that would help my learning along?

Apologies in advance for the OT question.

My fav is the website you see in my profile.... chrismartenson.com

i highly recommend his 'crash course' videos ... about 3.5 hours of free information explaining the basics of money, it's creation, inflation, the exponential function, resources, debt, ... you name it. they have forums there populated by intelligent and thoughtful posters, who are happy to answer questions as best they can, and won't talk down to you.

excellent resource.

all the best!

reply to post by thewind


Hey there.

Even though we disagree on 'hyperinflation and the now', just wanted to share these government reports. Maybe you already read them.

These are projections from the fed, CBO, and GAO - which indeed warn of the potential for hyperinflation in our near future.

www.moneyandmarkets.com...


I see the storm brewing too, my friend. We just have different near term forecasts....

be safe!

I can confirm that gold stocks are currently the most rising stocks in Sweden as well.

Its strange because normally people buy gold when the world is in a recession. Right now the economies are starting to get good again. People are investing and corporations are doing good. So why buy gold? You buy gold before a recession, not after it.

So perhaps there is something to this. Time will tell.


[edit on 8-12-2009 by Copernicus]

reply to post by Copernicus


the 'recovery' is a mirage, and once the steroids are taken out of the economy, we will see the natural slump that sluggers always face towards the end of the run....

on the edge of the recession is another round of milking the citizenry, and like how the steroids ravage our system by forcing it to overproduce, against it's natural tendencies, the ultimate effect will be a more rapid collapse on the other side. the only questions are, 'how fast, how hard'.

also take ETF's into consideration of gold - it remains to be seen whether bullion prices will separate from what are essentially market abstractions and side bets on the actual metal. in the long term, it may still hold value while currencies collapse. and if bullion prices finally separate from the market side betting, i see no reason why it's 'real' value will decline, in an atmosphere of greater demand.