‘Big lender’ China urges US to avoid bankruptcy

[verdo]

http://rt.com/business/china-us-default-debt-838/

I'm really curious to hear from you guys on what a potential screw up here would mean for gold prices going forward. Boehner seems to be sending mixed signals on what he's willing to do to prevent a catastrophic outcome here

[Forrest]

Re: ‘Big lender’ China urges US to avoid bankruptcy

I don't know if Boehner has the stones to push Obama into a corner, and keep him there, but Obama doesn't give a hoot about the people's welfare, or the economy, so long as he's okay. If this goes on, Obama will just blame Boehner for whatever happens. Boehner can only do what people are telling him they want done, but he's not got enough sauce to hold a press conferance and ask for the people's choice, saying he'll stand if people really want him to. Not really likely, but if all that happened, and no continuing resolution was passed, the Fed would just step in and pay the bill since no one is following the law anymore. No one can prevent the Fed from printing more money, and going around Congress...they are a private company, and can pay the government's bills if they want to. Bernanke might want to tell the Treasury Secretary - I'm sure Obama wouldn't object.

America won't default because we don't have to. We can however go on with a continuing resolution on the current budget. I don't think that will fund Obamacare though, so in a way everybody wins. Obama keeps his pride intact, everyone gets paid that must get paid, and we do not raise the debt ceiling. Just call it continuing sequestration.

As for gold, there may be a temporary flurry in the price as we get closer and closer to October 17th without a resolution, but that will likely settle down since a lot of people are moving to cash as the only safe position to bug out of quickly. Gold prices will probably rise for a short time, then settle back again.

Right now the whole world is paying off debt, and trying to buy something that holds it's value, which is deflationary overall.

It will be interesting to see how Boehner stands up to the pressure as we get closer to the 17th. I'll call him again tomorrow, and tell him to not back off...I hope other people are as determined as I am not to fund this kind of health care bill...we have to pound the guy daily. We need a better plan that won't crush business to get an overall health care system in place, like a mini-Medicare plan, with the attorney's kicked out of the malpractice arena, and a country wide insurance free-for-all to be your health carrier.

[verdo]

Re: ‘Big lender’ China urges US to avoid bankruptcy

Well Boehner's rhetoric sounds pretty firm so far

It's hard for me to determine how far he's willing to go with this, but if they really don't care about the debt limit being hit, I'm very inclined to sell good portion of my gold and buy it back at a cheaper price. Even if the Fed swoops in, I just don't see it as being a seamless process with no crash being triggered.

[touchring]

Re: ‘Big lender’ China urges US to avoid bankruptcy

http://rt.com/business/china-us-default-debt-838/

I'm really curious to hear from you guys on what a potential screw up here would mean for gold prices going forward. Boehner seems to be sending mixed signals on what he's willing to do to prevent a catastrophic outcome here

I think it'll be bad for gold if the screw up affects Indian purchasing power.

[GRG55]

Re: ‘Big lender’ China urges US to avoid bankruptcy

It's all noise...

[Forrest]

Re: ‘Big lender’ China urges US to avoid bankruptcy

I don't want to pay to sell, and pay to buy again, and pay taxes on the profits, not including taking the risk of being wrong on getting out, and getting back in.

For me, it's a matter of my current buy-in average still being lower than the cost to dig the stuff out of the ground. Even if gold actually did drop on deflationary tendancies for a year or so, I don't see it going below $900.00, because it costs that much to dig it out of the ground at the minimum (Unless you have a big silver mine, with some extra gold attached to it). And since I'm below that on my costs, I might just as well hang on to it.

I'd love to buy some more, though, but I can wait. We can go a lot lower, to be sure, but we could also just hang around within a $100.00 up or down. To make money trading, I would need to trade a lot of it, and I don't have that kind of portfolio.

Gold to me is insurance, not a profit opportunity, and I won't bother selling it at all if it doesn't adjust to the cost of oil..when the world knows we don't really have all that much of it. That could be a long time coming.

The risk and cost of trading gold is just not worth it to me in this current mess, trying to guess which way a couple of politicians are going to jump.

[photon555]

Re: ‘Big lender’ China urges US to avoid bankruptcy

If Obama is going to shut down the National Parks and memorials (and the ocean around the Keys) I would really like to see the White House shutdown and the current occupants evicted. Then it could be converted into a Bed and Bath. We could get 100K a night for the Lincoln Bedroom alone!

[Forrest]

Re: ‘Big lender’ China urges US to avoid bankruptcy

If Obama is going to shut down the National Parks and memorials (and the ocean around the Keys) I would really like to see the White House shutdown and the current occupants evicted. Then it could be converted into a Bed and Bath. We could get 100K a night for the Lincoln Bedroom alone!

We should be able to get more...$100K was back in Clinton's day! There's been 13 years of inflation since then...and Washington has very high rental values.