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|QUOTE OF THE WEEK:||Views: 698|
|Apr 16, 2007 7:05 pm||QUOTE OF THE WEEK:||#|
QUOTE OF THE WEEK:
From Ron Pauls? ?Texas Straight Talk?:
?The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch--Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference--that threatens to impoverish us by further destroying the value of our dollars.?
From James Steel of HSBC:
?Gold tends to appreciate in times of financial or economic stress or uncertainty. Rising trade tensions are an example of just such an issue that may support gold prices. Historically, gold prices have usually declined during periods of expanding world trade and generally harmonious trade relations, such as during the sweep of globalization in the 1990?s. Since the collapse of the Doha trade negotiations last year, gold prices have generally risen. Renewed trade tensions between China and the US are having just such an impact on gold now, in our view. The USD weakened after the US government moved to file a complaint against China and the World Trade Organization over copyright piracy. China reacted harshly to the US complaints, with a Commerce Ministry spokesman claiming the action would ?seriously damage? trade between two nations. If trade disputes between the two largest trading nations and economies in the world escalate, then the prospect of uneasy relations could generate sufficient financial market anxiety to strengthen gold prices, in our opinion.?
Monex Deposit Company
Private Reply to me4you
|Apr 17, 2007 5:41 am||re: QUOTE OF THE WEEK:||#|
|Hey I would tend to agree with Ron out here.....I think it is well past time that the government takes a serious look at the results of various fiscal policies. |
Some very urgent remedial action needed here else the "sharks" will close in !!!!
Private Reply to Sanjay Rao
|May 07, 2007 9:45 pm||re: re: QUOTE OF THE WEEK:||#|
|The blood is already in the water, the stable door wide open.|
The Paradigm shift began when Wall Street started losing money in ealry Chinese Investments, a new dynasty is rising in the world, and it is more important to align oneself with it.
This may appear to deviate hugely from the central thread of the post, but nonetheless, the end of an era is a messy affair. The industrial revolution ended a long time ago. The economies that thrived then can no longer rest on their historical position (decadence) there is only so long that an economy can survive after it's value has diminished with it's savings account haemorraghing to support itself.
What more can one say, the sun rises in the east, day has ended in the west!
Halliburton is relocating to Dubai, that in itself should make a very clear point.
I guess what I am saying is solid and tangible assets are tried and tested and safe. Creating a new and funky bank instrument has a short growth effect on a portfolio, but a corporation and even an individual needs to have exposure to Gold, especially at this stage in the cycle and also have capital allocated to the emerging markets.
These are new economies that are dawning in the world.
With the value of the US economy diminshing and inflation rising the dollar is simply not equipped to deal with the cost of living, it is in debt. So effectively any dollar denominated has to wade through taxes and inflation. You can see immediately that any investment position needs to be generating atleast double digit returns to breakeven. The underlying funds of most pension plans available at present simply do not propse good value for money in the long term. Therefore Gold needs to be in every person's savings portfolio, not just the astute investor.
We could write a book here, maybe we should! Which way the USD will swing is anyone's guess right now, Government will put together a good press release, but the fact of the matter is Sanjoy is right the government has a very major problem on it's hands and China is way to strong to tolerate the usual BS deployed on weaker nations. US is too dependent on cheap 'er' Chinese products for it to be able to extracate itself from the realtionship unscathed. The US has met it's match and is quickly realising it is outgunned and outflanked.
What does this mean for you and I. Wake up!
Private Reply to Adam Antoszewski