Gold, Precious Metals Collapse

10 posts

Broseph
Fear was the motivator for most/all of the little players. I don't think there's a chance for exuberance in this economy. Just continued corporate profits. I believe the companies themselves are scared, hence the stockpiling of cash and lack of risky plays. I believe the economy has gotten to static in this sense. My conjecture is that if some large, unexpected shock were to occur at a fundamental level (not unlike the oil crisis) the economy wouldn't be able to bounce back. It's not an adaptive economy anymore.
Vuk
Bronze Age Pervert

This is a sign for Salo to begin its spring training: to become a unit of hardened men who, in the coming crisis, will be ready to take the money, the gold, the women.

Niccolo and Donkey
Yes. I am burning around 2500 calories per day now through exercise. The time to strike is approaching.
Niccolo and Donkey
SteamshipTime Alex Broseph President Camacho Stubby Vuk

Ambrose is blaming the FED and the Bank of Japan:

Fed and Bank of Japan caused gold crash


An interesting conclusion:

Broseph

Bob Murphy's commentary:

Whole thing here: http://consultingbyrpm.com/blog/2013/04/krugman-gloating-on-gold.html
President Camacho

A very interesting and, ultimately IMO, prescient take on the situation: Gold Lied, Inflation Died

In other words, people are only considering inflation in the context of a price level rise relative to stagnant disposable income. But the converse scenario will produce essentially the same effect: price levels have remained flatter than expected, but disposable income has decreased-- not because salaries have decreased-- but rather because of the staggering amount of debt that individuals are strapped with. Part of this is still the lingering housing debt from the bubble, but student loans are probably the prime culprit.

Now the CPI is a garbage statistic, but it has been surprising that prices haven't risen more considerably within the past 5 years or so, even by real metrics. Ultimately though, as the author claims, at some point all of this new money will have to work its way into the economy and we will start to see higher (perhaps even double-digit) real rates of inflation. And I don't see wages shooting up or debt coming down anytime soon, so this move will be even more painful.
Cornelio

This might not seem relevant, but the other day I subscribed to Schiff's newsletter (why? I don't know, I'm incapable of even understanding basic math, let alone economics), and they fucking called to my cellphone. I don't know what the guy wanted, I hanged up. At first I thought it was Nic (the only anglo-speaking person I know who has my number) fucking with me.

My theory? Gold has crashed for real, Schiff had all his money invested in gold, now he and his pathetic company are desperate to get some money to pay the bills and are calling to all the retards that subscribe to their website to beg for fiat money. Another sad case of an internet lunatic who believed his own crazy bullshit.

Broseph
If the economy starts to actually recover and grow in a meaningful sense, this will happen. If there's a downturn, we might see lots of debt restructuring (destruction of credit) and actually face deflation again. We're just blowing bubbles to fight off deflation.
Byssus
lol, you hung up on insolvent Jew Schiff.