Rick Ackerman Joins Inflationistas (Has An Epiphany!)

[Guest]

Looks like Rick Ackerman has just had an inflationist epiphany ( just when a few iTuliper's were starting to entertain grave doubts! :p )

If Gold Hits $5K, Would You Sell?

published October 13

Here’s a question for readers who have been hoarding physical gold: How would you react if the price of bullion were to spike to $5000 an ounce by November? Would you sell some, or all, of your ingots and coins? And if you did not, would you fall into despair a few days later if bullion were to come plummeting back down to $100? As farfetched as this scenario might sound, we are warning subscribers to take urgent steps to prepare for it, and other potentially extraordinary events as well, since the unprecedented financial turmoil that we have witnessed in recent weeks suggests that no scenario, no matter how extreme, can be ruled out.

Indeed, the coming economic collapse may not be the slow, black-hole implosion that we have long imagined, but more like a tsunami. As such, it could make the 1920s German hyperinflation, which took nearly two years to play out, seem almost leisurely in comparison. Back then, the financial world wasn’t wired like the ganglions of a central nervous system. It is now, though, and that is why the banking system, along with the global economy, could conceivably short out instantaneously in a shower of sparks.

http://news.goldseek.com/RickAckerman/1223913742.php

[walenk]

Reverse alchemy

At $5K I would practice reverse alchemy, turning gold into 9mm lead rounds with alacrity.

[metalman]

Re: Rick Ackerman Joins Inflationistas (Has An Epiphany!)

Looks like Rick Ackerman has just had an inflationist epiphany ( just when a few iTuliper's were starting to entertain grave doubts! :p )

If Gold Hits $5K, Would You Sell?

published October 13

Here’s a question for readers who have been hoarding physical gold: How would you react if the price of bullion were to spike to $5000 an ounce by November? Would you sell some, or all, of your ingots and coins? And if you did not, would you fall into despair a few days later if bullion were to come plummeting back down to $100? As farfetched as this scenario might sound, we are warning subscribers to take urgent steps to prepare for it, and other potentially extraordinary events as well, since the unprecedented financial turmoil that we have witnessed in recent weeks suggests that no scenario, no matter how extreme, can be ruled out.

Indeed, the coming economic collapse may not be the slow, black-hole implosion that we have long imagined, but more like a tsunami. As such, it could make the 1920s German hyperinflation, which took nearly two years to play out, seem almost leisurely in comparison. Back then, the financial world wasn’t wired like the ganglions of a central nervous system. It is now, though, and that is why the banking system, along with the global economy, could conceivably short out instantaneously in a shower of sparks.

http://news.goldseek.com/RickAckerman/1223913742.php

good catch. remember rick's hard and fast position mar. 2007?...

RICK: You’re confusing means and ends, Eric. Hyperinflation most assuredly is not debt deflation, but rather one of two possible ways in which our debts might be liquidated. Hyperinflation would arbitrarily and indiscriminately destroy creditors and savers as a class while allowing debtors effectively to skip-and-go-naked. Debt deflation per se implies that debts will be liquidated through bankruptcy, destroying borrowers (who in many instances will be creditors as well) more or less in proportion to their sins.

Concerning the "debate," there is nothing silly about it except for the blather of those who apparently have not troubled themselves to parse the statutory and reflationary implications of the 1980 Monetary Control Act. My opinion is that, well before such time as the legally untested provisions of the MCA could ever be pressed desperately into service – in theory, legitimizing, say, the purchase, by the U.S., of a bankrupt GM’s pension bonds – full-blown deflation would have long since rendered the psychological "machinery" required to massively reflate virtually inoperable. On the evidence, I would infer that neither you nor Dr. Hudson believes the psychological piece of the argument even matters.

http://news.goldseek.com/RickAckerman/1173709353.php

so much for foresight and consistency.

[Thailandnotes]

Re: Rick Ackerman Joins Inflationistas (Has An Epiphany!)

Looks like Rick Ackerman has just had an inflationist epiphany ( just when a few iTuliper's were starting to entertain grave doubts! :p )

If Gold Hits $5K, Would You Sell?

published October 13

[COLOR=black]Here’s a question for readers who have been hoarding physical gold: How would you react if the price of bullion were to spike to $5000 an ounce by November? Would you sell some, or all, of your ingots and coins? And if you did not, would you fall into despair a few days later if bullion were to come plummeting back down to $100?

What are the chances of making the right move in those "few days?" The premium above spot is ridiculous. The delivery period is also increasing.

Here I am in Thailand. There are gold shops everywhere, common as 7-11's. The buying/selling prices are established by the government every evening based on London. Price are posted in the store windows before the shops open. You can buy bullion, but it is slightly off purity percents worldwide. No one buys gold in Thailand and takes it to China to sell. But the ability, the liquidity, to buy it and sell it here in Asia, is very different than in the US. It's like clicking a mouse while watching a TV and getting cash with rubber bands around it.

[Guest]

Re: Rick Ackerman Joins Inflationistas (Has An Epiphany!)

Thailand notes - I don't buy Ackerman's thesis of a lightning spike followed by complete collapse in the gold price. H'es been a deflationista since time began. Now he's "got religion" about inflation coming in with a whoosh, but he's like a newborn infant frolicking around in the inflation fields with his ideas. Still a bit goofy, IMO. He'll settle down with the inflation / gold thingy over time but right now he's sort of all over the map with it, zooming this way and that like a kid with a new bike. :rolleyes: