Banks no longer posting deposit rates?

[schoolsout]

Where is the misinformation? I wouldn't rely on the economic views supported by the author of Atlas Shrugged either.

Most people who own gold have never even seen it except for watching Gold Rush on Friday nights. Gold is an investment creation sold on the TV by G Gordon Liddy. I don't oppose the ownership of gold for investment reasons. It goes up and it goes down, just like everything else. My opinion is that many feel that gold will skyrocket when things turn real nasty and I don't happen to share that view. I think gold goes up because investors feel that it will protect them against inflationary pressures which it has done many times in the past and will most likely do in the future. But many other things will also do the same thing, just like gold. Gold is the one thing that you can invest in but can eventually do nothing with. You can't eat it, you can't use it to heat your home. The only value to gold is when you...................drum roll please......................SELL IT!

People associate gold with something you have to have even to the point of excluding everything else. Hey, it's worked for the last 5 -6 years. Hope you didn't hold gold before that because it was horrible. Why, you ask? Because inflation fears were low even though money was being pumped into the system like crazy. We just didn't create money printing last night. This has been happening for a long time. What's different this time? The economy has run out of steam now because of too much debt - personal and gov't. Gold has gone up because everyone thinks it is a safe haven. Well, I got news for ya. The only safe haven is..................... the US dollar. Best investment in 2011 by far, US Treasuries. Everybody will run to the very thing that looks the worst. Why? Do we have the most gold? No, because we have the freeiest society and everyone has the faith that, if anyone can turn this around, we can.

People push gold because it is easy to. Try to go understand the economic theory behind oil contango and backwardation sometime. Gold is easy to understand. It always goes up because we are screwing ourselves. I just don't think this will always hold true and there are a lot more commodities out there that I would like to own as a diversifier.

That was Alan Greenspan that said that, not Ayn Rand.

And address what I asked of you before going to something else, please. Let's focus here. After you address what I asked of you, we can move on to other things in your post. You seem like an intelligent person and I agree with a lot of what you say, but there is still a good bit of misinformation in your post(s)

 

[grsthegreat]

All it would take to turn this society around is an end or at least control over a run away EPA. Lets open back up the steel mills, lets uncap the oil rigs in OK and TX. Lets start producing HERE in the USA instead of shipping all the work overseas.

A larger working force paying taxes will help turn things around real fast.

i dont believe in this doom and gloom philosophy that alot of people harbor. Im been thru 2 previous recessions and this is just another one. It too shall pass.



well..time to go move some snow....

some seat time .....will be fun

 

[schoolsout]

What does gold have to do with this? News flash....... we will have a national debt of 25 trillion dollars before any of this gets better. If that bothers you then get prepared. We cannot balance the budget and survive. This change of course will take at least 10 years and we will pile up a lot more debt in the mean time. Sorry, foreclosing on millions of people to get the residential housing market back on track will not work. A reasonable course of action is to cut spending over time and try to figure how best to cut SS, Medicare and Medicaid expenses in the out years.

This isn't the end all, be all, but the chart I posted earlier in this thread...the one I was referring to and the one you are apparently asking about can be found here.

http://www.tractorbynet.com/forums/...sting-deposit-10.18.11_us-debt-debt-limit.jpg

The price of gold related to the US Debt limit. Is it a coincidence? I'd say no as there is a reason gold is being bought up by Central Banks the world over for the first time in a long time.

So, as you say, the debt limit will go up and so will gold...at least according to this chart. Do you disagree with this chart?

 

[schoolsout]

i dont believe in this doom and gloom philosophy that alot of people harbor. Im been thru 2 previous recessions and this is just another one. It too shall pass.

The previous recessions were papered over with easy money/credit. The crash of 2000 was "fixed" with cheap money from Greenspan and fueled the housing boom/speculation/misallocation of resources...what are we suffering from now?

What is the interest rate now? It's not working. We've hit the wall....this isn't your ordinary "recession," I'm afraid.

 

[KansasFarmer]

Sorry for the change in UserId but I am at home.

While your posting comments from ZeroHedge....

Guest Post: Got Gold? Why Owning GLD Can Be Hazardous To Your Wealth | ZeroHedge

Many investors diversify their portfolios with precious metals through ownership of GLD, the gold ETF. I do not read ZeroHedge much because I find it too one-sded but found this guest commentary.

As I have stated from the beginning, I have nothing against owning gold as a hedge against inflation and political risk. Many other things work the same way even though A Greenspan thinks, because he was a student of Rand, that gold is it. A Greenspan got us into this mess singlehandedly so I don't rely on his smarts too much anyway.

Many other investments can protect you against inflation and political risk. As stated in another thread, many families are expanding their farm holdings at ridiculous prices because their grandkids will own it and everyone needs to eat. I am a glass half full person because it is easier to make money in the market that way. I prefer to invest in great ideas when they are cheap rather than buy things that will go up only if the world falls apart.

Will the secular trend of gold follow the US debt levels? I would assume so but so will many other things. Holding too much gold is not a good thing. Even Harry Browne, the famous investment management guru, only allocated 25% of his famous portfolio to gold. And, his objective for the portfolio was to protect one's purchasing power (inflation to the rest of us).

I believe that we are facing the first time in our history where external macro pressures will determine our political landscape. In the past, idiots like Greenspan thought that they could control our economy through interest rates. In the future, our interest rates and the pressure on our budget will determine how much we can spend on things like health care, etc. We will be forced into austerity, less demand and lower consumption. This may lead us to deflation versus inflation which will be bad news for gold and all other commodities.

 

[schoolsout]

ZH does have bias, but it is a good source of info

Here's another good source on gold/silver....concerning paper markets SLV is the silver version of GLD


My Blog

With many global investors still concerned about the price of gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source stated, “We’ve still got a very, very compressed spring because the shorts are still trying to defend their positions, their naked short positions in both the gold and silver markets. As an example, in the silver market, you saw that type of activity in the silver ETF (SLV). Shorts borrowed another 3 million ounces to cover immediate delivery concerns. There are 25 million ounces now borrowed from SLV. It is getting worse and worse for them.”

The London Trader continues:

“They are naked short on the COMEX and to meet immediate delivery demand they are having to borrow it from the SLV. It is still unwinding and it’s still got a long way to go. Yes, you will still see games being played and yes you can create paper gold out of thin air. But there comes a point where each time you do that the physical buyers are taking it and it has a lagging effect that will catch up, and eventually it gets reflected in the price.

The demand for euro gold here in London is so intense it’s shocking to some of the players. This is what has left some market participants in the US wondering why the price of gold has risen along with the dollar. It’s because demand in the eurozone is unimaginably strong. The euro physical gold demand is off the charts and it is creating shortages for metal, in size, here in London.

The physical gold market is actually being drained by euro gold buyers. People are converting their euros to gold and there is only a finite amount of physical gold available. Again, that’s why you are seeing the dollar and gold rallying together.

We are also seeing very strong markets in Asia with solid premiums. Silver is in backwardation. There are huge premiums for size (large tonnage orders) in silver and you are going to wait 3, 4 or 5 weeks for delivery. There is constant backwardation into the March futures contract. For the most part, the bid on silver spot has been higher than the ask on March futures.

These paper markets are a joke. Nobody who is seriously in the business of taking physical delivery is trading on the COMEX anymore. That is big news. The COMEX is no longer a credible marketplace….

 

[EE_Bota]

This chart is not the only thing affecting the price of gold, but ultimately, when all emotions settle and markets clear, gold follows the debt levels of countries.

Mathematically, at this point in time, there is no way the US can repay it's debt. Welcome to reality

We can save paper by making a new trillion dollar bill, and print 16 of them. Right? It is not backed by anything...not gold or anything, right? Debts are to be repaid in a currency, not necessarily a valuable commodity.

Once I start making $16 billion dollars a year for my lowly engineering tasks, I'll still make my $4 billion dollar a year contribution, probably start desiging wheelbarrows capable of hauling enough money to buy a loaf of bread.

Now...we will probably seize all gold. It has been done before, and can be done again, right? Make it a federal offense not to turn it all in. Pay you much money in worthless green paper, and sell it to foreigners for something of value.

There are several realities. Welcome to any you choose, or any you have cornered the market on, or any you don't wish to leave, or any you are banished to.

 

[EE_Bota]

Times of uncertainty or crisis are often opportunity...

I think there is a lot of capital sitting on the sidelines looking for direction.

It is true that those everyday folks that had diligently saved a little each year for the golden years are fast finding out all those projections from the financial guys don't add up to spit...

I have a binder where I collected data from the "Experts" regarding retirement planning at work... thinking I might actually be the first in my family to retire... mostly, we just work till we can't... so goes it with many family businesses.

Dad was thrilled when I went to work for the local Hospital 20+ years ago... he said that I can look forward to things he never had... Dad's been gone over 10 years and the pension, profit sharing, stock options, etc... that he was so happy for me no longer exist...

Maybe, it was just a window of time that the boom generation was fortunate enough to be a part of us.

I figure without a decent return... I will follow in the family footsteps and never retire... which isn't all bad.

The low rates, combined with inflation, across so many sectors is real... going to buy consumer goods, groceries and fuel proves this daily...

I'm old enough to remember when banks competed for depositors... when the branch manager would call customers about promotional rates for "New" money deposits...

In general... I would wager to say that many of us are in better positions than the general population... for the most part, we can create, build and repair things with ingenuity and some can even eek out a living off the land we own...

For generations... one side of the family had a small family Dairy Farm... never more than about 30 acres and 30 milk cows... it was enough to provide sustenance...

Isn't there a song "The Country Boy will Survive"?

I'd like to meet you some day and have a long talk. I think I could learn a great deal from you.

 

[schoolsout]

We can save paper by making a new trillion dollar bill, and print 16 of them. Right? It is not backed by anything...not gold or anything, right? Debts are to be repaid in a currency, not necessarily a valuable commodity.

Once I start making $16 billion dollars a year for my lowly engineering tasks, I'll still make my $4 billion dollar a year contribution, probably start desiging wheelbarrows capable of hauling enough money to buy a loaf of bread.

Now...we will probably seize all gold. It has been done before, and can be done again, right? Make it a federal offense not to turn it all in. Pay you much money in worthless green paper, and sell it to foreigners for something of value.

There are several realities. Welcome to any you choose, or any you have cornered the market on, or any you don't wish to leave, or any you are banished to.

Did I ever tell you the story of when my place got robbed and they stole all my gold/silver?

But you are right...If it comes down to it, the gov't will take what it wants. After all, it's the "honey badger" of governments

 

[EE_Bota]

you know..you come across as a typical spoiled know it all.......sorry but thats my take on it.

I wasn't given ANYTHING. I paid my own way thru college and graduate school. No grants, no scholarships and no family money. I have run my own successful electrical contracting and construction businesses for over 20 years. i KNOW how money works and i know how to leverage and when not to leverage my assets.

I paid off a 30 year mortgage in 12 years by working harder and making double payments.

My old home loan was in the 8% range. I worked extra hours and weekends to make money for the extra payments.

Don't you EVER sit there all smug and say they your working is paying for my lifestyle, cause it isn't.


Man, it pisses me off to no end that someone ...who admits hes only 29, knows everything there is to know about finance and how the world runs.

****, i have underwear older then you.

enough said... I wont bother to defend my ideas any more here. I should have known better than to enter another gold or no gold debate.

I don't care if you defend them, but I like to hear them, and I hope you'll keep giving your ideas.