Davos 2010: George Soros warns gold is now the 'ultimate bubble'

[hayekvindicated]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

It would be REALLY FUNNY if that "something else" turned out to be gold, wouldn't it? Then, WHAT would you do?;)

What are you doing with your dollar holdings again, since you yourself say it is going to be replaced?

Ive salivated at that prospect many times. I dont think it will happen though. Gold production cannot be ramped up at the rate at which the global economy will grow - ergo, it will have a deflationary effect which no one wants. Also, it will limit the power of governments to spend.

[bill]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Buying Yen and buying Japanese stocks are two entirely different plays. I bought the Yen at the start of 08 and sold it in October of 08 (and piled into gold). if I had any yen Id sell them - the carry trade play is over and the Yen will lose a lot of value because of the Japanese government's atrocious fiscal position.

But well run Japanese companies are an entirely different matter. The only thing I cannot make up my mind on is whether I should buy now or when inflation gets really bad in Japan. I doubt Japan will see hyperinflation any time soon - its external net asset position is very healthy and it has more than a trillion dollars in forex reserves. They'd have to burn through all that before they have a serious fiscal crisis. But the Yen could decline a lot over time.

Japanese companies on the other hand are quite well run and many are global players that could benefit from a weakening Yen. And the stocks are ridiculously undervalued. Its the only stock market in the world now where you can find value. Everywhere else, the reflation has really driven P/E ratios into the stratosphere.

Purchase Japanese companies with resource ownership and or takeoff agreements. Japanese companies have been very busy acuminating resources securing inventories during the last sell off.

Japans technology when applied to materials can enhance value benefiting export companies. I stress only companies with locked up resources, export value and little or no competition. Have an exit plan before that next door neighbor develops and competes.

I agree with you the yen will reverse, weaken and that is a concern when holding stocks denominated in yen. I used a portion of my yen for resource purchasing during last sell off and likely to exit completely during this short term turbulence bump we are heading into.
Good luck to you.

[jtabeb]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Ive salivated at that prospect many times. I dont think it will happen though. Gold production cannot be ramped up at the rate at which the global economy will grow - ergo, it will have a deflationary effect which no one wants. Also, it will limit the power of governments to spend.

You miss the point.

IT DOESN'T HAVE TOO!!!

I have one sentence for you.

"Inflationary in FIAT TERMS, Deflationary in GOLD TERMS"

A high and increasing (in FIAT TERMS) Gold price is EXACTLY that.

PERFECT for GLOBAL Trade, stable in purchasing power terms, Fluctuating at different rates against different FIAT currencies.

China is DOING THIS ALREADY? (see here:

http://jessescrossroadscafe.blogspot...ears-past.html

)

(What makes you think that ANY country will be able to resist the lead that they have taken if they want to remain competitive? Hint EVERYONE is going to have to follow or their currencies will LOSE ALL CONFIDENCE! )

Capice? ;)

[Blackhawk]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Today a 2.2b 15k employee company in a major metro area went JTABEB. They put out a bulletin called-One Month At A Time- disaster/emergency preparedness. "One Month At A Time" is a program designed to help employees prepare for disasters.... water managment, money, food, etc. The idea is to prepare in the next 12 months... one month at a time.

Anybody else seeing this?

[jpatter666]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Today a 2.2b 15k employee company in a major metro area went JTABEB. They put out a bulletin called-One Month At A Time- disaster/emergency preparedness. "One Month At A Time" is a program designed to help employees prepare for disasters.... water managment, money, food, etc. The idea is to prepare in the next 12 months... one month at a time.

Anybody else seeing this?

You know....that could damn well be a viral campaign. Bumper stickers, slogans, whatever.

"Gone JTABEB yet?"
"Are you JTABEB ready?"

More? (you know, partly this is jest, partly thinks it might actually work...)

[jtabeb]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

You know....that could damn well be a viral campaign. Bumper stickers, slogans, whatever.

"Gone JTABEB yet?"
"Are you JTABEB ready?"

More? (you know, partly this is jest, partly thinks it might actually work...)

We just need to turn it into a political movement, and you just may be on to something there. (Of course, I am a bit biased, so as always seek the opinions of others, but make sure you make up YOUR OWN mind).

[friendly_jacek]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

currencies begin @1:34 ... SDR @3:41ish

Now, how recent is this interview? He openly talk about slow, managed decrease in dollar value in the future. This doesn't seem to agree with the gold being bubble now. Was the "gold = ultimate bubble" taken somehow out of contest?

[WildspitzE]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

I think that it's Oct 2009.

[raja]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

You know....that could damn well be a viral campaign. Bumper stickers, slogans, whatever.

"Gone JTABEB yet?"
"Are you JTABEB ready?"

More? (you know, partly this is jest, partly thinks it might actually work...)

For my part, I absolutely refuse to vote for any politician who is not PRO-Jtabeb, or who will not fully endorse the Jtabeb Gold Reinstatement Act of 2010 :eek:;)

[jtabeb]

For my part, I absolutely refuse to vote for any politician who is not PRO-Jtabeb, or who will not fully endorse the Jtabeb Gold Reinstatement Act of 2010 :eek:;)

Just to be clear, we ARE NOT talking about a "Gold Standard" here.

What we ARE talking about is a FREE MARKET GOLD PRICE, akin to what China has set up.

You can buy it with currency, and sell it back FOR CURRENCY and the price is free to roam where it will (and NOT BE TAXED ON EITHER SIDE OF THE TRANSACTION).

THAT, is what I propose.

Paper and electronic money can be the "transactional medium", but Gold MUST BE the store of value function of money.

And if we are REALLY SMART, we would do this with silver, platinum and palladium as well.

PM standards always fail due to an inherent design flaw. We need to design that flaw out of our future monetary system.

Transactional Media are really good and functional, but are CRAPPY stores of Value. Physical PM's are the Stores of Value par excellence, but pretty crappy transactional media.

We need something REVOLUTIONARY! A system that combines the best of BOTH products, and minimizes their respective weaknesses.

Maximize the Value store function of Physical PMs, and Minimize their transactional pit falls.

Maximize the Transactional Medium function for Digital and paper currencies, and Minimize their store of value pit falls.

The synergy of BOTH FORMS OF MONEY is what we need. NOTHING LESS, will work.

We HAVE to fix our broken MONETARY SYSTEM. I can't see ANY other system that would be as ROBUST and EFFECTIVE as the one described above. Anything else, will just put us back on the path that we are on now.

Ron Paul is right in that we need a new monetary system, I just think he is not thinking BIG enough or in a new enough Paradigm that can be effective driving the world economy forward in the 21st Century.

Ever See "Meet the Robinsons"? It's a animated film about a future inventor who time travels into the future to meet his future family and his future self, bottom line we learn how he comes up with his motto "KEEP MOVING FORWARD".

That's what we have to do in this country "KEEP MOVING FORWARD", using the BEST SYNERGISTIC SOLUTIONS that we can come up with.

A Gold Standard is BACKWARDS, and doomed to fail, just like it did last time.

"KEEP MOVING FORWARD" America! Be mindful of our history, but always look to the future.

[skidder]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

Just to be clear, we ARE NOT talking about a "Gold Standard" here.

What we ARE talking about is a FREE MARKET GOLD PRICE, akin to what China has set up.

You can buy it with currency, and sell it back FOR CURRENCY and the price is free to roam where it will (and NOT BE TAXED ON EITHER SIDE OF THE TRANSACTION).

THAT, is what I propose.

Paper and electronic money can be the "transactional medium", but Gold MUST BE the store of value function of money.

And if we are REALLY SMART, we would do this with silver, platinum and palladium as well.

PM standards always fail due to an inherent design flaw. We need to design that flaw out of our future monetary system.

Transactional Media are really good and functional, but are CRAPPY stores of Value. Physical PM's are the Stores of Value par excellence, but pretty crappy transactional media.

We need something REVOLUTIONARY! A system that combines the best of BOTH products, and minimizes their respective weaknesses.

Maximize the Value store function of Physical PMs, and Minimize their transactional pit falls.

Maximize the Transactional Medium function for Digital and paper currencies, and Minimize their store of value pit falls.

The synergy of BOTH FORMS OF MONEY is what we need. NOTHING LESS, will work.

We HAVE to fix our broken MONETARY SYSTEM. I can't see ANY other system that would be as ROBUST and EFFECTIVE as the one described above. Anything else, will just put us back on the path that we are on now.

Ron Paul is right in that we need a new monetary system, I just think he is not thinking BIG enough or in a new enough Paradigm that can be effective driving the world economy forward in the 21st Century.

Ever See "Meet the Robinsons"? It's a animated film about a future inventor who time travels into the future to meet his future family and his future self, bottom line we learn how he comes up with his motto "KEEP MOVING FORWARD".

That's what we have to do in this country "KEEP MOVING FORWARD", using the BEST SYNERGISTIC SOLUTIONS that we can come up with.

A Gold Standard is BACKWARDS, and doomed to fail, just like it did last time.

"KEEP MOVING FORWARD" America! Be mindful of our history, but always look to the future.

Seems to me he's on the same page AND doing (or trying) something about it.

"
Saturday, December 12, 2009 12:30 AM

Ron Paul introduces Free Competition in Currency Act of 2009 Category: News and Politics On December 9, 2009 Congressman Ron Paul introduced the H.R. 4248 Free Competition in Currency Act. This bill would do thee things: 1. Eliminate the legal tender laws. 2. Eliminate laws that prohibit the operation of private mints. 3. Eliminate capital gains and sales taxes on gold and silver coins. It's time to start writing your congressmen. Encourage them to cosponsor this bill. Let's give the Fed some competition! Here is the text of the bill: H. R. 4248 ....To repeal the legal tender laws, to prohibit taxation on certain coins and bullion, and to repeal superfluous sections related to coinage. IN THE HOUSE OF REPRESENTATIVES" full text: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4248:

[WildspitzE]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

"When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

"and they are developing at the moment"...hhmmm...

In looking at this quote some more, I don't think that he is saying that gold currently is a bubble (and about to pop). I think that he is saying that gold is the ultimate asset bubble to be developed (due to current conditions).

I could be wrong though, just a thought based on the wording.

[jtabeb]

Re: Davos 2010: George Soros warns gold is now the 'ultimate bubble'

"and they are developing at the moment"...hhmmm...

In looking at this quote some more, I don't think that he is saying that gold currently is a bubble (and about to pop). I think that he is saying that gold is the ultimate asset bubble to be developed (due to current conditions).

I try not to think for people, just give them information and trust that they will come up with the correct conclusion for themselves.

Thanks, you MADE MY DAY!