Collapse imminent?

[vinoveri]

Re: Collapse imminent?

Thks for the advice, and if those who have too munch free time, reflect on "Sutra of the heart" "Body is nothing more than emptiness, emptiness is nothing more than body. The body is exactly empty, and emptiness is exactly body. The other four aspects of human existence -- feeling, thought, will, and consciousness -- are likewise nothing more than emptiness, and emptiness nothing more than they. http://webspace.ship.edu/cgboer/heartsutra.html or http://en.wikipedia.org/wiki/Heart_Sutra Wisdom to all of iTuliper's Yvan F

you forgot to mention "crystals" and shrooms

[icm63]

Re: Collapse imminent?

Sorry...I still don't get the "Australia" part in all this! Why Australia? Before you answer check out both our domestic debt and especially our foreign debt situation.
I'm not just being argumentative here. I just see Aus as a disaster waiting to happen. Yet everyone keeps saying it is this great place to invest. I keep wondering what i am missing.

YES aussie has massive private debt problems, but your wealth is in the ground, and with the demand from rich foreign reserves countries like China you will be able to sell the stuff.

if Jim Rogers is correct..BUY Commodities, then that means BUY commodity currencies ( even New Zealand, under 0.50 NZDUSD).

Major Risk for Aussie : Is water and housing (labour Govt)

But versus the USD it should do better than USD when it falls.

[kartius919]

Re: Collapse imminent?

I don't know know, but I have a big hunch. Japan has been a net seller of US treasuries, China if i recall correctly has stopped buying, and Americans never bought the long bond anyway since yields suck. Who is left to buy the junk? Short dated treasuries are being gobbled up by everyone.

[c1ue]

Re: Collapse imminent?

If the banks are using the money lent by the Fed to buy Treasuries, rinse, repeat, that'd be one reason.

The same dynamic as we saw in the summer when the banks were taking the 'good' collateral traded to them by the Fed (in exchange for the 'bad' MBS's and CDO's) and used it to drive up commodities.

Just a theory.

[LargoWinch]

Re: Collapse imminent?

I don't know know, but I have a big hunch.

Welcome to iTulip kartius919.

Friendly word of advice; grapejelly and god forbid - Metal - will not take this kind of comment lightly.

I recommend posting a graph or data or a funny pic at least with it.

[kartius919]

Re: Collapse imminent?

The Feds opened the discount window to investment banks this year after the Bear Stearns buyout. I thought that the commodity boom was due to excess credit from the Japanese carry trade and Greenspan. Oil peaked around July. Bear fell in March. Guess the final runup could have been due to opening the discount window. Thought that was more to shore up capital reserves to hide insolvency and pay off bad derivative bets.

It may be the the banks that are purchasing the securities using the Fed funds with the government paying them a guaranteed profit. Or it may be the Feds buying directly. Not sure if there is a difference. I am too tired to find charts and citations so take whatever I say with a grain of salt or I could just not post. *Edit* what I mean is that the Fed is deliberately affecting/manipulating the Long term rates trying to lower the yield. Bernanke has referenced this anti-deflation tool in his writing and speeches.

[Chris]

Re: Collapse imminent?

Just look at the 20 year treasuries right now.
Incredible!

The long bond futures were very volatile yesterday (wild enough to stop me out of my position unfortunately). I wonder if team USA's creditors will be using this period of quantitative easing to get out of their dollar holdings? It certainly feels that way.