Chile Forum

Moral of the story: buy GS!

Regarding the complete collapse of the USD: I think the best chance the US has is in the 10-15 years that follow the current recession. There needs to be solid fiscal planning by the US government as far as simply balancing the budget. Sacrifices must be made. The general public will have to learn that you can't always get what you want. I believe that if the US can balance the budget in the next five years it will take pressure off of the push towards a "basket," or alternate world reserve currency. Following that balance will need to be a serious commitment to reducing the national debt. I completely agree with EEUU that other economies will devalue their currency to keep up with the US until a new world reserve is found. If an alternative is adopted, the US will fall, hard. I think that Obama sees the issue, and has spoken of reducing the deficit, but he won't be able to get started unless he gets reelected. Even worse, he will probably have to make the deficit even larger to make good on campaign promises that won't be funded by the taxes that won't be collected from the people that won't be working as soon as the recession is officially over. It all depends on whether or not the people demand that politicians really do what's right for the country, or the uneducated masses that rely on the TV news (Oh my god did you hear about Sarah Palin? ) cry if they don't get what they want. Hopefully this financial crisis will allow some of those people the opportunity to see that what is happening to their budget can happen to their governments as well.

On a brighter note looks like the \federal minimum wage will be raised - that should help!!!

Good and interesting words, AK.

Goldmen sachs
Last Trade: 146.46

Screw that. I think I will just buy gold. It cheaper by the Oz.

admin wrote:Goldmen sachs
Last Trade: 146.46

Screw that. I think I will just buy gold. It cheaper by the Oz.

Not sure if I agree with you Charles. From the way EEUU's article sounds:

eeuunikkeiexpat wrote:The Great American Bubble Machine
Matt Taibbi on how Goldman Sachs has engineered every major market manipulation since the Great Depression

MATT TAIBBI

[i]In Rolling Stone Issue 1082-83, Matt Taibbi takes on "the Wall Street Bubble Mafia" — investment bank Goldman Sachs. The piece has generated controversy, with Goldman Sachs firing back that Taibbi's piece is "an hysterical compilation of conspiracy theories" and a spokesman adding, "We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good."

...your one share at US$147 would contain waaaaaaay more ounces of BS than gold at US$925/ounce!

I agree with EEUU, I'm more afraid of high inflation across currencies (i.e. fiat across the board devalues against real goods) than a collapse of the USD by itself.

Things could get more interesting. As this guy says(and I believe), the markets-especially commodities-are inflated and manipulated by the big guys in the unregulated OTC markets.

In testimony that warned of the influence of these unregulated markets on commodity prices, Michael Greenberger, the former head of the CFTC's Division of Trading and Markets, estimated that if unregulated trading of energy and agricultural commodities were eliminated, the price of oil would drop by 25% to 50% "overnight."

http://www.dollarsandsense.org/archives ... llins.html

And congress is looking at regulating the OTC markets as well as the ICE market.

http://www.forbes.com/feeds/ap/2009/07/ ... 31921.html

http://www.reuters.com/article/reutersC ... 4P20090708

More of the same
http://www.telegraph.co.uk/finance/news ... ators.html

All of economics is esoteric, but at bottom what 'backs' the economy is essentially, consensus. And when the object of that consensus gives the appearance of insubstantiality, and the consensus begins to lose confidence that what they have put their faith in is 'real' , you have a crisis like this one. The economy was exposed as a 'house of cards' because what had been a perfectly good market was converted into a casino by people who made a lot of money playing a financial version of musical chairs. It is not an easy thing to restore confidence while the chairs are continuing to disappear from beneath the arses of investors--now revealed to have been 'suckers'. I do not envy President Obama this task, and I wish him well in the effort.

I think, "60", that you've just made as insightful and concise a summary of the current American economic turmoil as I've ever read. My thanks for it.

Quite a few famous people, whose last name started with "G", were in the business of composing signatures for allchile forum members.





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"None are more hopelessly drunks than those who falsely believe they are not." ~~~ G.

I really love recently how the companies like AIG and just about every other one on the stock market has been burning investors by diluting the share values to pay of debts. Their stock price collapses to penny stock levels, suckers buy up at say a dollar a share or so, they do a reverse stock split, a public offering of new shares, or both, and then the price crashes back down to pennny stock levels or worse because there is no revenue under them. This has been happening in every industry. Be aware of any company that is issueing stock to pay debt, rather than to invest in things like expansion or other tangible revenue growing buisness.

They are all engaging in a legal ponzi scheme and there is no protection or regulation. At least with a Ponzi scheme the guys that got in early get paid by the suckers that buy later. We are not even getting that much out of the shares.

You got to really love the new super computer milisecond trading. If you think you know what a share price is worth on the stock market, or even approximately, read this:
http://finance.yahoo.com/banking-budget ... -budgeting

IT circles we have known this game was going on for a long time, just now it is making it out to public level. Chances are however no one in the public will be outraged about it simply because they will never understand it as they fumble around trying to get the date set on their VCR that went obsolete 10 years ago.

Just another reason why computer literacy (more than just using your email) is critical now to even having a remote chance to keep democracy functioning. Unfortunately, it is likly way too late for most.

RuneTheChookcha wrote:Quite a few famous people, whose last name started with "G", were in the business of composing signatures for allchile forum members.





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"None are more hopelessly drunks than those who falsely believe they are not." ~~~ G.

G be Goethe or G be that nonperson entity (name rhymes with goldmine sacks) who recently lost its secret code to fleece investors and speculators/control the financial markets ➢ support the reserve banking system ➢ control the surface of planet earth ➢ serve their universal hyper-dimensional masters

And they ask me why I drink