[Shinrei]

Just don't think that I missed this little gem...

Quote

Shin..If you're listening, I was wrong about the idea to axe health and welfare...But it is because of Obama and nout else. I really hope he doesn't see this admission...

[frookenhauer]

It was there for you to find, but would have been even more relevant had oven chips had been elected instead the golden brown boy from Motown...possibly.

[frookenhauer]

right anyway got to the middle of the week and the economic world is still fine-ish considering. And even the daily

Spoiler

bastardgobshiteuselessdrivelhatemongeringdesperatehousewivesshiteating

Mail reckons that it is time to start drip feeding your stocks and shares...Hows that?

[Cold Iron]

Oh well... I guess this is not the big one then...


Wait, what happens when China becomes the financial juggernaut and then it collapses? Yeah now that will surely be the end.

[frookenhauer]

by then we'll live in domes orbiting Saturn...who the hell gives a damn? Kidding.

Well done for joining the sane and farsighted people who are fairly certain that the sky will not in fact fall on our heads!

The china thingy...Chines people are very very different to the rest of the world. There are times in their history when they should have by rights conquered the world and we'd be speaking mandarin. They just don't seem to be the sorts who would be fighting their way to the top over the dead financial bodies of competitors. But that's just me.

[Cold Iron]

I don't think it really matters what they're like, their population alone means once they reach even mexican or eastern european levels of per capita gdp their economy will be the world dominator.

[Slow Ben]

It doesnt hurt that the US owes them billions and billions of dollars either.

[Thelomen Toblerone]

There's an interesting article in the latest Economist (eugh, I feel dirty just saying that) documenting China's withdrawal from capitalist market ventures back to centralised control in the wake of the recent economic downturn.

[Cold Iron]

Coupled with the aging population and single child policy problems we may see China faulter before it grows too big.

[frookenhauer]

There is nothing wrong with the Economist, but the more I read it the more I have to filter out its...fullofitselfness, because its bloody informative and really does give one a good feel for things from an economic perspective. The economist couple with the FT and the NYT news feeds really does help in my line of work, just to keep me informed as to what my clients are going to come up with by way of objections.

CI are you ditching your argument already? I think China will be fantastic, but because of its huge poplutaion...I dunno, I just reckon that it will not benefit them too much cos...its a bureaucratic nightmare. The mind boggles when dealing with over a billion people.

[Stradivarius]

Frookenhauer, on Mar 19 2009, 12:03 AM, said:

There is nothing wrong with the Economist, but the more I read it the more I have to filter out its...fullofitselfness, because its bloody informative and really does give one a good feel for things from an economic perspective. The economist couple with the FT and the NYT news feeds really does help in my line of work, just to keep me informed as to what my clients are going to come up with by way of objections.

CI are you ditching your argument already? I think China will be fantastic, but because of its huge poplutaion...I dunno, I just reckon that it will not benefit them too much cos...its a bureaucratic nightmare. The mind boggles when dealing with over a billion people.

totally agree with ur opinon of the economist frooky!

[Cold Iron]

I think China has problems that are not going to be easy to solve. If the economic juggernaut is to survive they are going to encounter unprecedented problems. I think they need to rethink economic policy if they are going to shift from an export economy that depends on the west for income to a world leading economy.

[Nicodimas]

Add 1.2 Trillion brand new printed dollars.

So that takes the 800 billion pre Sept 2008 in the money flow to 2 trillion dollars pre March to 3.2 Trillion dollars post march 18th.

http://finance.yahoo.com/news/Fed-launches...f-14684161.html

We are look like we are on a path toward hyperinflation.

http://research.stlo...DJSBASE?cid=124

[Shinrei]

I've been saying all along that the economy would recover from this downturn - for a short 3 to 5 year term. People who lost jobs will get jobs again and begin thinking, "that wasn't so bad." (Keep in mind, 2 years of downturn isn't a terribly long time, it just seems that way when you're in the middle of it. I predict by 2012-2014 though, we'll have another big snafu once the markets realize and react to how worthless the dollar actually has become. I'm salivating over the pulllback to $600-$700 an ounce gold that should happen over the next year or so, because when the dollar crisis hits, that's when it's going to be truly valuable.

[Cold Iron]

I'm still skeptical about real gains from gold. 200, even 300% yes, but no more.

[Shinrei]

Even if you just look at how much the dollar has lost its value since the gold standard was abandoned, gold should be over $1000 as it is.

There are tons of articles out there speculating what the price of gold 'should' be. I just view it as preserving value, while the dollar depreciates. An ounce of gold would buy you a decent suit, a night at a nice hotel and a fancy meal back in the 1920's. An ounce of gold will do the exact same thing today. Meanwhile, you can't go to a movie for a nickel or buy a pair of boots for $2 anymore.

[Cold Iron]

Agreed, but shares over the same time scale yield much larger gains.

[frookenhauer]

Shinrei no Shintai, on Mar 19 2009, 03:23 AM, said:

Even if you just look at how much the dollar has lost its value since the gold standard was abandoned, gold should be over $1000 as it is.

There are tons of articles out there speculating what the price of gold 'should' be. I just view it as preserving value, while the dollar depreciates. An ounce of gold would buy you a decent suit, a night at a nice hotel and a fancy meal back in the 1920's. An ounce of gold will do the exact same thing today. Meanwhile, you can't go to a movie for a nickel or buy a pair of boots for $2 anymore.

Don't forget the hot women! shin...speaking of which your Avatar...If she's not your sister (sorry CI) can I haz?

@ CI I'd be more than tempted to agree with you, but for one thing...How many companies that were trading in the 1920s are still trading now? Shares require active participation to produce the best results, but you can also get returns by following all share indexes and whatnot which just gain and loose value on the rises and the falls of the whole of the market. it would be a better proposition than just hoping a share or a group of shares succeeds

Glad you agree Strad!

This post has been edited by Frookenhauer : 19 March 2009 - 09:52 PM

[frookenhauer]

Okay...The economic world as we know it is still standing and ALLS WELL!

[Cold Iron]

Tell that to someone who lost their job this year.