Discussion in 'Markets & Economies' started by JulieW, Nov 15, 2013.
Care to explain your comment to those that dont know about the A strategy?
Hoarding dollars does restrict liquidity, however printing new dollars is easy. Yellen has already hinted additional 'liquidity' to come, the more people save dollars the more she will print them.
"She defended the central bank's current course of pushing for higher capital and
liquidity at the biggest U.S. banks, which she said would help make those firms less
risky. She also hinted at additional measures that could be on the way."
The good news is saving gold increases dollar liquidity. Working hard directly benefits the economy and in exchange for your efforts saving the most economically useless metal is probably the most selfless action one can take. Logic dictates that one should buy everything one needs and save the rest in gold, dollars are only for exchanging not hoarding.
people in the office are looking at me :lol:
I love it ...
This crazy bitch is only going to bring the US dollar down to its knees even sooner.
Joker - your "70 years + of US dollar still surviving" comment will definately stand the test of time as the dumbest statement ever made on this forum!!!
In times of "need", responsible citizens that saved for a rainy day, whether it be in cash, food, water, etc are considered "hoarders" and should simply part with their savings/goods because the greedy masses who were frivolous with their savings have nothing.
Just looked it up, The Alpha Strategy is a book. Very good summaries/reviews on the Amazon page.
only the middle class though the political elite get to keep hoarding theirs
Basic concepts that anyone can understand, I really enjoyed it and think it's the sort of book that you can recommend to anyone who wants to learn a little more about money and practical ways they can save/spend their money.
GP kindly posted the whole thing as a sticky in the Preparedness & Sustainability forum
This will be a long post but that's because it's a very messy circumstance the Fed has created.
Quotes from John Maudlin's Out of the Box unless otherwise noted.
So they have to avoid interest rate rise potentials - which accelerated when Bernanke mentioned the possibility last time. This would mean some sort of 'guarantee' that interest rates will be at zero for a fixed time, which is folly from a group of academics:
He quotes the Financial Times:
At the point of the problem is interest rates of course:
and in summary:
So what's that mean for Australia?
My view is : rising dollar as the carry trade of zero percent US Dollar loans rush at a 2.5% return in Oz - unless the RBA also puts us on a ZIRP schedule, and even then it's no guarantee. (Of non rising dollar that is)
Commodities up as inflation digs in and accelerates - meaning gold and silver mainly and then other liquid commodities.
Some sort of housing industry incentive (just as low percent interest will not be the cure the RBA thinks - even to zero) since as Mauldin says the problem is income not demand. This will help blow a big bubble in housing as smart SMSF's search out yield and spy RE on the list.
A bull market in everything that is providing returns and looks safe.
As for the outcome of this fool's paradise - I need another drink!!
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Bullish for booze producers. I'll join you.
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