Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

[GRG55]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

[...what Don Coxe calls a triple waterfall decline.]

well said GRG55


[...but that doesn't mean they are healthy; just means Canadian banks have treatable skin cancer instead of lukemia.]

and again: well said.


This is a challenging environment indeed then: everything seems overbought (commodities) - what is down substantially will likely go lower i.e. financials and inflation is high... confusing indeed.

Despite what you may hear from brokers, analysts and Bubblevision, this is one time when it may do all of us some good to remember that cash is an investment option. And if you are Canadian you have a reasonable currency option over keeping that cash in US $., if that is a concern.

[jtabeb]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

And if you are Canadian you have a reasonable currency option over keeping that cash in US $., if that is a concern.

Agreed, you'd be loonie to be dumiping your looinies right now.

[Starving Steve]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

Agreed, you'd be loonie to be dumiping your looinies right now.

I'm in shock now from the price increases at the supermarkets and Wal Mart in Canada. Sad to say, on the basis of purchasing power and on the 0% nominal interest rates offered at Canadian banks ( with fees on top of that ) how wrong could you go by dumping loonies for Bush bucks or for Japanese yen?

Unless I am in dreamland, grocery prices in Canada are up 20 to 50% over what they were last summer. And all the fun and games with groceries are back, just like they were played back in the 1970s during the Great Inflation: smaller sizes of boxes or cans, less weight in the box or can, empty shelves, no price posted, fewer special prices, special prices that are price hikes, stale goods, dents, etc.

Yes, I have raised this issue of inflation and Bank of Canada policies with my Member of Parliament, and she is going to hear more from me this summer about how Canada is being run.:rolleyes:

[GRG55]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I'm in shock now from the price increases at the supermarkets and Wal Mart in Canada. Sad to say, on the basis of purchasing power and on the 0% nominal interest rates offered at Canadian banks ( with fees on top of that ) how wrong could you go by dumping loonies for Bush bucks or for Japanese yen?

Unless I am in dreamland, grocery prices in Canada are up 20 to 50% over what they were last summer. And all the fun and games with groceries are back, just like they were played back in the 1970s during the Great Inflation: smaller sizes of boxes or cans, less weight in the box or can, empty shelves, no price posted, fewer special prices, special prices that are price hikes, stale goods, dents, etc.

Yes, I have raised this issue of inflation and Bank of Canada policies with my Member of Parliament, and she is going to hear more from me this summer about how Canada is being run.:rolleyes:

Seems you've been experiencing first hand a bit of "Victoriagoinup"? And what's going up in the vicinity of your Vancouver Island hideaway ain't real estate prices, but most everything else?

After being away some time, I too have been truly surprised at the incredible increases in prices for things like fresh vegetables, baked goods, haircuts, that sort of thing in western Canada. I had assumed that the US had seen similar or greater increases given the state of the bonar?

[Starving Steve]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

Seems you've been experiencing first hand a bit of "Victoriagoinup"? And what's going up in the vicinity of your Vancouver Island hideaway ain't real estate prices, but most everything else?

After being away some time, I too have been truly surprised at the incredible increases in prices for things like fresh vegetables, baked goods, haircuts, that sort of thing in western Canada. I had assumed that the US had seen similar or greater increases given the state of the bonar?

Yes, the inflation is raging in California too, except for the home prices which are deflating. So it is just like Victoria, B.C. Apparently, the entire world is inflating.

I don't know where the escape from this inflation is. Certainly it is not in $1000 gold nor $150 oil.

If you buy the real estate which is deflating, how do you pay the carrying costs on it which are exploding--- like taxes, like utilities, repairs, renovations, etc? And if you take renters, your place could end-up being a marijuana grow-op, especially if you are not living nearby your rental house.

[LargoWinch]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

jtabeb, i would not put to much faith in the Canadian loonie (unfortunately as I happen to live in Toronto). Canada's is printing no better confetti than the US unlike the Euro or Swiss Franc.

I am convinced that the loonie is now pegged unofficially to the USD since October 2007. How can crude oil increase from $90 or so to $145+ per barrel without any impact on the loonie?

When the Canadian loonie reached $1.10USD in October they started the printing press in Ottawa as demonstrated by the charts below:

2007 - American Dollars to 1 CAD (invert) Average Rates January 0.850691 USD (23 days average) February 0.854288 USD (20 days average) March 0.856094 USD (22 days average) April 0.88123 USD (21 days average) May 0.913879 USD (23 days average) June 0.938891 USD (21 days average) July 0.951894 USD (22 days average) August 0.945348 USD (23 days average) September 0.974386 USD (20 days average) October 1.0254 USD (23 days average) November 1.03607 USD (22 days average) December 0.998798 USD (21 days average)

Now look at 2008 (while crude reached $145):

2008 - American Dollars to 1 CAD (invert) Average Rates January 0.990432 USD (23 days average) February 1.00146 USD (21 days average) March 0.997285 USD (21 days average) April 0.986503 USD (22 days average) May 1.0013 USD (22 days average) June 0.983683 USD (21 days average) July 0.988724 USD (14 days average)

This is due to Canada's economy which is heavily dependent on US exports, especially Ontario - the country's most populous province.

So me, GRG55 and all other Canadians are paying more to bail out auto workers in Oshawa and Hamilton.

[jtabeb]

Re: Jim Rogers: Fed Action an "unmitigated distaster" and "probably illegal"

I'm in shock now from the price increases at the supermarkets and Wal Mart in Canada. Sad to say, on the basis of purchasing power and on the 0% nominal interest rates offered at Canadian banks ( with fees on top of that ) how wrong could you go by dumping loonies for Bush bucks or for Japanese yen?

Unless I am in dreamland, grocery prices in Canada are up 20 to 50% over what they were last summer. And all the fun and games with groceries are back, just like they were played back in the 1970s during the Great Inflation: smaller sizes of boxes or cans, less weight in the box or can, empty shelves, no price posted, fewer special prices, special prices that are price hikes, stale goods, dents, etc.

Yes, I have raised this issue of inflation and Bank of Canada policies with my Member of Parliament, and she is going to hear more from me this summer about how Canada is being run.:rolleyes:

My Gold maple "loonies" are actually INCREASING in value, go figure?