Get ready for a Long Depression

[Jovial Monk]

You have to think about possible deflation.

Sappho, the way the G20 is going, with austerity the order of the day, the demand for gold will only continue to increase. Just Imagine Spain and Greece defaulting on their debts, or leaving the EZ and inflating their national currency.

Home brew shops will continue to do well

[AiA in Atlanta]

A good friend of mine buys gold constantly, regardless of the price.

[Sappho]

I have decided to close my account at with my stockbroker and buy gold, specifically American Eagles. Anyone else?

You should have bought gold about May 2006... This gold bubble is old and about to explode. For those who got in early and have enjoyed the ride seeing their asset values almost double, if not double... now is the time to think about getting out and put that money into agriculture.

Hard assets are they way to go and agricultural land is certainly a good one. Disagree about gold. And anyway, I plan to buy and hold and am not looking for short-term profits.

Look into it in more details AiA... remember that there are significant fees associated with holding gold. If you want to hold it long term, then buying at almost peak price is not wise... wait for the bubble to burst. Also, know your history on gold and the depression so that you can realize just how risky an option you are considering.

Agriculture (and munitions which as a pacifist I cannot advocate making money from murder) is the safest bet in times of financial mayhem, impending depression and war... we all have to eat regardless of what is going on. You need a wide spread in agriculture however... can't put all your eggs in one basket as the chickens may stop laying.

[Sappho]

You have to think about possible deflation.

Sappho, the way the G20 is going, with austerity the order of the day, the demand for gold will only continue to increase. Just Imagine Spain and Greece defaulting on their debts, or leaving the EZ and inflating their national currency.

Home brew shops will continue to do well

Things are getting hot to over heating across all markets as the hope of the hopeless begins to waiver significantly. Gold was the great hope, but linked to nothing in particular than that hope of the hopeless, it will crash. The Brenton Woods agreement that saw the USD become the reserve currency of the world no longer operates. There is no gold standard. At best, gold is a measure of inflationary trends, but gold itself cannot inflate for ever. That it is riding high now implies a period of significant inflation. Food prices which have already started their steep incline to inflationary nirvana are the way to go at the moment. Get it whilst you can still afford to and watch your financial base ride high in your balance sheets.

Anyways... go check what the US did with gold and cash mixing it with totalitarian laws during the depressive years in order to stabilize the banks.

Food and weapons of mass destruction with a smattering of comtech investments are the means to wealth in today's climate dear readers.

[Jovial Monk]

http://www.nakedcapitalism.com/2010/06/ ... rkets.html

nakedcapitalism has a long list of would-be prophets…

Bank Stress, ECB Liquidity Withdrawal Efforts, Deflation Fears Rattle Markets

We’ve warned for some time that the eurozone’s sure-to-fail muddle-through approach to its structural challenges was rattling investor confidence. Worse, its insistence on wearing an austerity hairshirt was not only committing Europe to deflation, but had high odds of sucking the global economy down along with it. Given how fragile the recovery is in advanced economies, and the magnitude of the debt overhang in many nations, a downturn could easily morph into a deflationary downspiral, potentially a full blown depression.

Let’s recap of some of the troubling sightings.....

Fucking idiots!

[Jubial Priest]

Maybe if the EZ didn't have a long list of socialist govts spending like a Labor govt, then they wouldn't be in this mess to start with, but dicks like yourself voted them in selfishly sucking up the money govts threw at them to stay in power.

Now your lot are crying because they face some cutbacks...a failed economy can't spend their way out despite your BS

[Sappho]

http://www.zerohedge.com/

Try that one Monk. It's one of my favs. Also bloomberg is good for mainstream up talking of the markets and economies... although, when they start down talking such things, you know it's worse than they claim.

[Jovial Monk]

Thx, added that to “Useful Political links.”

Page 3 of todays Fin Rev

Renewed volatility on debt concerns

[Sappho]

Maybe if the EZ didn't have a long list of socialist govts spending like a Labor govt, then they wouldn't be in this mess to start with, but dicks like yourself voted them in selfishly sucking up the money govts threw at them to stay in power.

Now your lot are crying because they face some cutbacks...a failed economy can't spend their way out despite your BS

Explaining Derivatives, And Goldman's Dominance Thereof, In Four Simple Charts

The link above should help you to understand how one of the major elements of the GFC came about. Obviously it was not a monocausal event... there are three major themes entailed with derivatives being one. So lets just stick to derivatives at the moment... we can move on to other elements later.

The derivatives market collapsed leaving mass debt in its wake, an inter banking lend rate that was restrictive resulting in a liquidity crisis which saw corporates reducing costs which translates into reducing labor hire, banks, insurers and brokers with too much debt on their books etc etc... This was the stuff of the Great Depression. We knew from the last depression that to do nothing is cataclysmic... so the idea was to do something hence the stimulus packages and bank/ insurer bailouts.

Now, my question to you is this... if govt spending to reduce the impact of the GFC was not a good idea... what is the right idea? Given we have a double dip looming and govts broke from the first bailout attempt, govt spending is no longer an option. Given you are so passionately against govt spending to reduce the depressive impact or at least slow it, you must have an alternative in mind. What then would you do?

[Jovial Monk]

IQ is such a moron, most of the EZ problems happened under conservative govts, like in Greece. In Spain the problem was rampant real estate fluctuations, etc etc.