Banks now have a NEGATIVE reserve ratio

[scooter]

Gold doesn't change in value; everything else changes in relation to it.

Gold's value is determined by and is constantly changed by supply and demand.

The second part of this sentence is true, however. For some reason the goldbugs fail to realize that these changes in relation to gold could be in the adverse direction.

If you treat gold as a currency, then treat it like all currencies. There are times when it rises in purchasing power, and times when it falls. It's not a one-way ticket.

 

[Xenophage]

So you're saying that a measurement of how much oil can be bought with gold isn't a metric? Interesting.




Who said anything about measuring inflation with oil and gold? I was talking about purchasing power for a single commodity.




Gold is not a totally safe store of value (although it can't be debased to zero like a fiat currency can be). Gold is an investment that makes sense at certain phases of the business and commodities cycles, just like any other investment.

Who is suggesting buying gold into a top? Are you saying you think gold is at a top now?

JordanQ72 is just trolling for angry replies, but he doesn't understand the first thing about economics.

He attempted to dispute that wealth and money were two separate things when I called him on it in another thread.

 

[JordanQ72]

JordanQ72 is just trolling for angry replies, but he doesn't understand the first thing about economics.

He attempted to dispute that wealth and money were two separate things when I called him on it in another thread.

I called you out for some bullshit post IN SOME OTHER THREAD.

Why are YOU POSTING about it ON OTHER THREADS. So you tell me, who's trolling?

 

[JordanQ72]

Gold doesn't change in value; everything else changes in relation to it.

And you have to realize that that's your own opinion, and quite wrong. Gold is now a commodity just as everything else. New gold mine found, prices goes down, new use found, price goes up.

Are you telling me that the ENTIRE WORLD somehow loses value because some 4 ton gold mine is found in South Africa?

 

[jonahtrainer]

I called you out for some bullshit post IN SOME OTHER THREAD.

Why are YOU POSTING about it ON OTHER THREADS. So you tell me, who's trolling?

JordanQ72 is a known troll. Do not feed the trolls.

 

[JordanQ72]

JordanQ72 is a known troll. Do not feed the trolls.

Love you too sweetie. Really makes your arguments seem valid when you can't support them against pointed questions.

 

[kyleAF]

JordanQ72,

I've never called a man (or woman) a troll in my life. Had never heard the term before I found this forum...

You may be making good points in some cases, but damn. I searched your posts. Negativity abounds!! Pretty much everywhere in the 206 or so now.

Opinion? maybe, but after reading your posts.

 

[JordanQ72]

You may be making good points in some cases

Really? I didn't get that feeling from the responses to any post I've ever made on this forum. Really feels like this forum is just looking for people that are RAH-RAH 100% behind Ron in every possible way, and that's fine, but that's not me, and most importantly, it won't be anyone looking into Paul as a possible candidate. Luckily, I don't care what people here say, Paul has me as a voter and supporter for a very specific set of reasons and I can't think of anything changing that, and I do my part to campaign for him out in the real world.

 

[jdmetz]

That doesn't make any sense as something must be considered the risk-free investment.

Gold doesn't change in value; everything else changes in relation to it. In a relative universe something has to be the standard against which all else is measured. That standard is gold like the sun to our solar system. The planets move around the sun not the sun around the planets. Earth (US$) is not the center of the solar system; gold (the sun) is.

Most people seem to think the US$ or their respective national currency is the risk-free rate. After all, it is the tool they use to perform the mental calculation of value.

Look, everything changes in price compared to everything else. Gold is only a risk free investment if gold is what you are going to want later. If everyone suddenly decided gold was worthless, it would be, and it wouldn't buy you anything. Historically gold was used as a currency, so it is unlikely for everyone to decide that, but still possible.

However, gold isn't inherently riskier than any other currency. With the way the Fed is trashing the USD right now, I would say that the USD is probably riskier than gold and many other currencies.

The only risk free investment would be a balanced portfolio of everything you will need in the future. The problem with that is that some parts of it spoil. It would also be difficult to hold 30+ years worth of food.

 

[jonahtrainer]

Look, everything changes in price compared to everything else. Gold is only a risk free investment if gold is what you are going to want later. If everyone suddenly decided gold was worthless, it would be, and it wouldn't buy you anything. Historically gold was used as a currency, so it is unlikely for everyone to decide that, but still possible.

However, gold isn't inherently riskier than any other currency. With the way the Fed is trashing the USD right now, I would say that the USD is probably riskier than gold and many other currencies.

The only risk free investment would be a balanced portfolio of everything you will need in the future. The problem with that is that some parts of it spoil. It would also be difficult to hold 30+ years worth of food.

At all times and in all circumstances gold remains money. It can never become worthless. Money substitutes can become worthless. Both money substitutes and money circulate as currency. Therefore, gold is less risky than fiat currencies.

These loans aren't necessarily used as reserve, or that banks aren't stocking reserves. It's caused by a new FED instrument, the TAF loans. Banks eagerly took the loans because they cost less than they would pay you, the FED, or other banks normally for money, and loaned it out. It has nothing to do with reserves. That number next week will probably hit -20 due to the last TAF auction, then start going back up when the loan terms expire in a month.

Wrong again. Look like the Fed will be auctioning another $60B in Feb. Ceritas paribas the real reserve ratio of the US banking system will be -6%!!!

The Federal Reserve said Friday it will provide $60 billion in fresh cash to commercial banks in two auctions in February and will keep holding auctions every other week for as long as needed to ease the credit crisis.

The Kondratieff Winter is upon us and the snow IS falling. Run To Gold.

 

[JordanQ72]

At all times and in all circumstances gold remains money. It can never become worthless.

You keep saying this, yet you've never made any single argument AS TO WHY. I can't believe you can't understand that something only has the inherent value people give it, everything has a supply and demand behind it. If people decide gold is worthless, guess what, it is. It doesn't matter what fantasies you have, if people suddenly don't want gold, whatever pile you have is worthless.

the real reserve ratio of the US banking system will be -6%!!!

Sigh, not this bullshit again. Yet again you simply go around in circles spouting off the same nonsense. SHOW ME that these are being used as reserves. YOU CAN'T. They're FED loans at low rates that banks loan out into the economy, that's it. As I've said before, what evidence do you have of any bank runs. The vaults are filled with physical cash. The FED wants to get banks lending again, this is how they accomplish it. Due to a definition of a category on 1 report, you keep talking in circles.

Run To Gold.

Yeah, how'd that work out for you today?

 

[misericordia]

bmp