On Tue, Mar 31, 2009 at 5:45 PM, Gruss G wrote: > > > RoMunn wrote: > > A lot better. He put most of his assets in gold over the last two years. > > 90's unless we suck it up and let some of these pigs go down the tubes, > > 3 problems with what you wrote: > > (1.) He didn't put his assets "in gold" he put them in *gold derived > securities*. Big difference if the shit hits the fan.
Incorrect. He bought gold. Actual pieces of gold - coins, if I remember correctly. He's stoked. > (2.) If we let banks fail 2 things happen: a.) the swaps they hold > become worthless triggering a domino effect meltdown and, b.) the > assets they hold flood the market triggering a domino effect meltdown. > In other words, if one person on your block sells his house he might > get a good price. If 50% of the people sell their house, prices are > going to drop. If 99% of people sell ... well they won't sell. > Most of the people in my neighborhood are retired and paid their homes off years ago. > (3.) A new cold war is on, but between the US and China. For the time > being, it's economic. > We've been talking about it on this list for several years. Which Gruss are you today? > China is in the exact some position now. They have the opportunity to > force their economic vision on the entire World and the US isn't in > much of a place to stop them. > They have to sell their crap to someone. As Paul Krugman said, we give them worthless paper and they give us poisoned goods. > > Lucky for, for the time being, the Chinese conservatives are winning. > > If we're REALLY lucky, the US will take the lead role in > recapitalizing the World economy. > > And so the New Cold War is on. > Obama's strategy seems to be the strategy that I outlined several years ago: 1. Borrow a shit-ton of money from China and spend it on our own country. 2. Watch as inflation devalues the debt that the US owes China- not just the money we are borrowing from them now, but all the money we owe them ($2 trillion or so). 3. Laugh his ass off at having taken back from China through inflation-driven currency devaluation the money they took from the US by suppressing the rise in their own currency. Essentially the Chinese have the very unpleasant choice of playing along and seeing their investment devalued by a large percentage, or deciding not to play along and potentially seeing their investment go to zero. Sucks for China. I just hope they see the bigger picture and don't decide to do something stupid, like invade Taiwan as payback. Then the shit will truly hit the fan. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:293442 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
