So, when do you think the printing press will start?

[Mega]

My guess...................they already have!

We see it in Dec (Happy Xmas)....then in force in Jan/Feb.

Mike

[Starving Steve]

Re: So, when do you think the printing press will start?

If the printing-press doesn't print enough money to counteract the trillions in losses witnessed in recent weeks, we would end-up with de-flation. And if the central banks print too much money, we end-up with inflation on top of the mess we are in. And if Helicopter Ben continues his ludicrous policies of endless printing and "liquidity injections with lots of firepower"--- Bernankee's own words, not mine--- then we end-up with hyper-inflation.

Here in Canada, the beaver buck is backed with U.S. dollars and Euros. And if the beaver buck is typical of how central banks back their currencies, then the entire world is heading into a major inflation, possibly a Latin American-style hyper-inflation, or worse.

I plan to add to my core gold position or possibly start a platinum position in addition to my core gold position. And yesterday, early in the day, I bought Husky Oil stock because this economic mess is just that dangerous now. I also decided to take my dividends in oil and gas trusts in more shares rather than more paper money.

Every person will have to play this as they see it, but with Bernankee and Kohn running the Fed, this is an inflationary disaster in the making.

What is the interest rate at the Bank of Japan now? One-quarter of one percent? All of the central bankers are in on this re-flation scheme.

Can you imagine central banks paying borrowers to borrow more money? That could be next. This is how ludicrous things could get, and they could get out-of-hand real fast, especially in the USA where debtors rule.

[rabot10]

Re: So, when do you think the printing press will start?

My guess...................they already have!

We see it in Dec (Happy Xmas)....then in force in Jan/Feb.

Mike

A very good book to read would be "The Creatue from Jekyll Island" will answer all your questions re the printing press. I don't think they have been off for some time. Many questions over the last few days re how to invest per itulip and what EJ has to say- just go back to "time to short the markets" and take a look at what return we would have if we followed that post, I am a pussy and sold my shorts way to early but more than made my sub to itulip off that adbvise lol - Jim sorry again i keep that lol thing going will stop it when U -- sorry can't say it or i will get banned again : )

your friend
rick

[Guest]

Re: So, when do you think the printing press will start?

Steve - I'm reading that out in 2012-2014 when the PM's suddenly bust out from all the latent inflation building up, gold is going to disappoint. It will "break out" up to $1800-$2000, but silver will "break out" to $50-$80. That is a performance difference of 260% (gold) vs. 800% silver. I think I'll hang on to my silver. The convergence of global industrial demand with inflation hedge / financial demand brings the bacon home for silver out there, but gold is a pure financial / monetary hedge so it will not be consumed by the buildout of half the world. In monetary terms there is far, far less silver in the world above ground than gold. Something like one sixth, and it runs out below ground two decades before gold according to the USGS.

This should be the "reward" which silver gets over gold for the discomfort endured by it's owners over the next six years. If Peak Cheap Oil kicks in out in the middle of the next decade, anything mined will see a very hard floor put under it's valuations. Anything semi-precious and CONSUMED in excess of it's mined production will see "the big squeeze". I have a different (longer term) point of view on these PM"s than you adopt. I think silver will well outperform platinum. It has a much nearer by exhaustion date in commercially minable quantities - only 25 years at present rates of consumption, according to the USGS!

If the printing-press doesn't print enough money to counteract the trillions in losses witnessed in recent weeks, we would end-up with de-flation. And if the central banks print too much money, we end-up with inflation on top of the mess we are in. And if Helicopter Ben continues his ludicrous policies of endless printing and "liquidity injections with lots of firepower"--- Bernankee's own words, not mine--- then we end-up with hyper-inflation.

Here in Canada, the beaver buck is backed with U.S. dollars and Euros. And if the beaver buck is typical of how central banks back their currencies, then the entire world is heading into a major inflation, possibly a Latin American-style hyper-inflation, or worse.

I plan to add to my core gold position or possibly start a platinum position in addition to my core gold position. And yesterday, early in the day, I bought Husky Oil stock because this economic mess is just that dangerous now. I also decided to take my dividends in oil and gas trusts in more shares rather than more paper money.

Every person will have to play this as they see it, but with Bernankee and Kohn running the Fed, this is an inflationary disaster in the making.

What is the interest rate at the Bank of Japan now? One-quarter of one percent? All of the central bankers are in on this re-flation scheme.

_____________

SOME INTERESTING DATA ON WHAT SILVER METAL DOES WHEN IT REVERSES FROM AN OVERSOLD PLUNGE: CATCHES UP, IN A HURRY

Wednesday, October 29, 2008

A Leeetle Rate-Lowering Announcement From the Fed and the US Dollar Index Came A-Tumblin Down


Gold Price Close Today : 752.80
Change: 13.50 or 1.8%

Silver Price Close Today : 9.805
Change: 1.015 or 11.5%

Gold Silver Ratio: 76.78
Change: -7.330 or -8.7%

US Dollar Index Today: 84.50
Change: -1.72 or -2.0%

[hayekvindicated]

Re: So, when do you think the printing press will start?

We need to see gold as currency (EJ's point) and not as an "investment". That is how Im looking at gold right now. I need to put my cash in a currency - and right now, there isn't a single paper currency that inspires much confidence for me except the Yuan (and that I cannot invest in so Im locked out).

Im looking to buy a lot of gold now - I will hold it as I hold cash. The speed with which the major currencies are being debased makes holding gold a no-brainer in my view. But one does need the sense to stay the course over a decade as the inflation scenario plays itself out. There is no point in looking at 6 month price corrections. This is also why I don't use any leverage - I just want to hold physical.

[phirang]

Re: So, when do you think the printing press will start?

We need to see gold as currency (EJ's point) and not as an "investment". That is how Im looking at gold right now. I need to put my cash in a currency - and right now, there isn't a single paper currency that inspires much confidence for me except the Yuan (and that I cannot invest in so Im locked out).

Im looking to buy a lot of gold now - I will hold it as I hold cash. The speed with which the major currencies are being debased makes holding gold a no-brainer in my view. But one does need the sense to stay the course over a decade as the inflation scenario plays itself out. There is no point in looking at 6 month price corrections. This is also why I don't use any leverage - I just want to hold physical.

FFR is 1%.

This was a key catalyst seen by most inflationistas.

We're there, and gold hasn't budged.

What's the next cataylst to make gold go higher?

[hayekvindicated]

Re: So, when do you think the printing press will start?

My guess...................they already have!

We see it in Dec (Happy Xmas)....then in force in Jan/Feb.

Mike

They've been running at full tilt the last two months. The effects will be visible a little later.

http://www.reuters.com/article/busin...49F97920081016

[hayekvindicated]

Re: So, when do you think the printing press will start?

FFR is 1%.

This was a key catalyst seen by most inflationistas.

We're there, and gold hasn't budged.

What's the next cataylst to make gold go higher?

Popping of the Treasuries Bubble?

[phirang]

Re: So, when do you think the printing press will start?

Popping of the Treasuries Bubble?

This is more like it:

http://www.cnbc.com/id/27442009

[hayekvindicated]

Re: So, when do you think the printing press will start?

All the actions of the US Government in the last year doom the currency long term. I cannot make a bull case for the Dollar in the long term and cannot see how anyone else could either (other than on "faith" that China and Japan will continue to support it indefinitely regardless of the cost of doing so).

Faber says the US Government will go bankrupt:

http://uk.youtube.com/watch?v=P39x9QfUNSQ

This is going to be fun to watch.

[labasta]

Re: So, when do you think the printing press will start?

They've been running at full tilt the last two months. The effects will be visible a little later.

http://www.reuters.com/article/busin...49F97920081016

I'd say your're right. I expect to see serious inflation in Jan. Hell, what am I saying... I've just come back from Tesco to do a two week shop. Wanted to stock up on washing liquid (for clothes). Wife tested it last week before we stocked up. I remember the price being 2.69 Euro (2 weeks ago). Went to buy 5 months worth (all they had in stock)... now costs 3.15 Euro each. WTF!

I'm guessing i'm seeing the old oil prices in the product (as it probably takes months for oil to turn into finished washing up liquid product).

Tesco may say when they have reduced prices for special offers but they sure as hell don't mention when they rack them up either.

It's a good job tight arse here notices these things.

[Guest]

Re: So, when do you think the printing press will start?

Labasta - people inside of and outside of the USD zone are seeing diametrically opposite things in some segmenst I think. Outside the USD zone while there is also some deflation per imploding asset values, there are also contradictory inflation signals, because all those currencies are falling hard against the USD and so producing mini "Iceland-effects" where their cost to purchase anything ex-country rises.

This is the same trigger or booby trap which EJ says will inevitably arrive to the USD as the currency zone which requires by far the greatest volume of external financing merely to continue.

Inside the USD zone I am seeing discounts at the stupidmarket. Big discounts in recent weeks, and empty shopping aisles compared to the past. We are in an "empty air pocket" over on the USD side - freefalling. So that gives a hint already that much of the "inflation / deflation" debate is predicated strangely on whether you are inside or outside the USD zone.

There is more than a hint here that much of it is a CURRENCY EVENT, and not the more generalized "deflation" because the "deflation" is showing a clear bias towards more inflation signals outside the USD zone.

The USD is gaining in purchasing power - except it's occurring in a country with a rapidly unraveling net flow of credit, and this is a country which is totally dependent on foreign credit inflows to avoid a debt service default (without factoring in monetization). This contradicts every attribute of a solid global unit of account in which a genuine deflation can develop.

How is that the picture of a currency presiding over a traditional deflation? Seems with the ongoing and obvious reversal of foreign incoming capital the US needs to merely service it's credit lines, the game is booby trapped to end abruptly. It cannot sustain without the continuance of foreign lenders and the lenders are leaving.

Anyway I am sure there are reports of deflationary effects also abroad as there is a major market collapse underway worldwide, but all currencies plunging vs. the USD must be creating inflationary crosscurrents in all these countries vs. deflationary ones here.

I'd say your're right. I expect to see serious inflation in Jan. Hell, what am I saying... I've just come back from Tesco to do a two week shop. Wanted to stock up on washing liquid (for clothes). Wife tested it last week before we stocked up. I remember the price being 2.69 Euro (2 weeks ago). Went to buy 5 months worth (all they had in stock)... now costs 3.15 Euro each. WTF!

I'm guessing i'm seeing the old oil prices in the product (as it probably takes months for oil to turn into finished washing up liquid product). Tesco may say when they have reduced prices for special offers but they sure as hell don't mention when they rack them up either. It's a good job tight arse here notices these things.

[Starving Steve]

Re: So, when do you think the printing press will start?

Popping of the Treasuries Bubble?

The popping of the treasuries bubble certainly would spell the end for America and its debtors. I can see this on the horizon now. It would mean much higher interest rates regardless of what the Fed would do.

[serge_oc]

Re: So, when do you think the printing press will start?

Somber voice narrates from the future:

"On January 11th, 2009 a mushroom cloud of newly minted paper money bills exploded over all major cities in the US, Russia, China and Europe. On that day MoneyNet became self-aware and activated printing presses of all major powers. Very few humans survived.

On December 16th 2008, desperate humans from the future sent the Moneynator Model D100 to the present in order to ward off the invasion of the printing presses.

However, printing presses of the future sent their own Moneynator Model D1000000000 which devalued Model D100 within a week."

[friendly_jacek]

Re: So, when do you think the printing press will start?

The popping of the treasuries bubble certainly would spell the end for America and its debtors. I can see this on the horizon now. It would mean much higher interest rates regardless of what the Fed would do.

I agree with that, and this is a fairly common knowledge. Now, most people assume that it means high inflation and low dollar.

But what if this spells big deflation a la 1929 or worse? Don't believe it?

Lets think about it. What would happen today if Fed raised rates today instead if easing 50 pts? The hell would brake loose with equities loosing 1000's, dollar and yen skyrocketing and gold and commodities cratering. Well, this is what it will happen if bonds burst, maybe in a slow motion though. Be careful what you wish for.

I hate to say it, but looks like itulip has it all backwards. The fact that EJ did not predict the rocket rise of $ since the summer wories me a lot. In retrospect, it was an easy call if one understood the mechanics of credit bubble bursting. Of course, I did not make that call but some people did (Marc Faber cames to mind).