GRG55: Oil Crashing

[Woodsman]

Re: GRG55: Oil Crashing

... we will make Utopia or wipe out humanity trying, the geeks will inherit the earth, solar system etc....

Yup. That's been true of bloodthirsty Utopian socialists like you going back from Saint-Simon and Fourier, to Marx, Lenin, Stalin, on down to Pol Pot. You don't care how many have to die because you live off the corpses of those you murder in pursuit of Utopia. To Hell with your kind.

[shiny!]

Re: GRG55: Oil Crashing

Yup. That's been true of bloodthirsty Utopian socialists like you going back from Saint-Simon and Fourier, to Marx, Lenin, Stalin, on down to Pol Pot. You don't care how many have to die because you live off the corpses of those you murder in pursuit of Utopia. To Hell with your kind.

Don't feed the troll, Woodsman. It's not worth your time. Remember a little while ago when he said no one would have to die? Now he says they will make Utopia or wipe out humanity trying. I think he's just trying to bait you.

[shiny!]

Re: GRG55: Oil Crashing

That was a little hard to follow. I buy gold as an investment. That means that it sits in my bank's vault for years until I need to spend it on, for instance, a 20lb bag of rice. The rice is for consumption, not investment. Did you intend to flip gold bars and buy oil futures?

Sorry if I wasn't clear. I mainly hold physical PM as insurance, to buy rice as you say (although I already have plenty of rice). My secondary reason for holding PM is to someday (possibly) sell a portion of it at a high to buy equities at a low, then ride the market up. But it seems there is no longer any part of the market that the Wall St boys can't completely screw with.

Back in 2011 EJ made his famous call that it was time to sell silver. Someday there will be another call like that. My question is, once you sell it, what do you buy if fundamentals no longer apply and every single sector is totally rotten?

[globaleconomicollaps]

Re: GRG55: Oil Crashing

Sorry if I wasn't clear. I mainly hold physical PM as insurance, to buy rice as you say (although I already have plenty of rice). My secondary reason for holding PM is to someday (possibly) sell a portion of it at a high to buy equities at a low, then ride the market up. But it seems there is no longer any part of the market that the Wall St boys can't completely screw with.

Back in 2011 EJ made his famous call that it was time to sell silver. Someday there will be another call like that. My question is, once you sell it, what do you buy if fundamentals no longer apply and every single sector is totally rotten?

I think many people believe that some day there will be a monetary reset accompanied by high levels of inflation. This is supposed to be followed by a period of return to normalcy with strong growth in the stock markets. This idea is wrong. We are at the end of a cycle lasting thousands of years. THIS IS IT. We will have a new money system certainly but it will NOT be accompanied by strong growth in passive investment income. I think that gold will be revalued upwards but gold will be permanently a better store of value than stocks. The out-performance of stocks we have seen for the last ~150 years will not be repeated in the new cycle. Instead gold will move upwards relative to things you wish to buy faster than stocks. Something like this:

[GRG55]

Re: GRG55: Oil Crashing

I've seen it in physical reality.
That's the output response of an automatically controlled system that's poorly designed and poorly tuned, oscillating and hunting and overcorrecting.
It's overpowered and underdamped, making it 'twitchy". It's a textbook example of instability in a control system.

If a junior engineer handed me that, I'd tell her to:

- reduce the gross motive power, it's way too big for the load
- adjust your PID controller to greatly reduce the gain on the proportional control
- adjust your PID controller to significantly increase the gain on the derivative control
- institute an anti-windup strategy for the integral control during reversals of direction.

+1