Topic: Gold collapsing. Bitcoin UP. - page 1514. (Read 2032274 times)

Charge!!!!!!!!!!!!!!!!!!!!!!!!!!!

It sure is, time to buy them miners, super cheap atm!!

Are those our dates for when we FTJ after BTC becomes the global reserve currency?

iz it tim yet?:

the divergence begins today!

and the correlation continues!!

AAPL down,  BTC down!!

y'all been double topped.

We're going to fill the Apple gap real fast and then $500 here we come!

http://www.zerohedge.com/news/funds-cut-positions-gold-4-and-silver-20-gold-positions-3-year-low

Credit demand is immense, just not from traditional banking sources. These statistics cannot capture the growing undercurrent of private contract (esp. hard money) lending. The banks may be hurting, but that leaves plenty of room for more nimble outfits with low overhead.

Credit demand destruction is exaggerated - it isn't collapsing, it simply is migrating to where it is treated best. The main losers are major banks, although everyone loses when the money supply is inflated. Again - the statistics are blind to this.

is this the credit demand you were talking about?  http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100016668/europe-faces-japan-syndrome-as-credit-demand-implodes/

Two must-reads:

The Case for a 100 Percent Gold Dollar

and

The Sunday Night Massacre, One Year Later

The first is a classic, explaining that only a perspective shift is necessary for a gold standard to function.

The TF Metals article explains exactly what has been going on for the past decade and is coming to a transition point - the banks are balancing themselves and will soon be in a position to actually profit from a move up in the precious metals.

Yes, it's a bugger of a balancing act. I don't know if rates can be kept low through 2014. Real rates are negative already, so anything done now (short of halting all capital flow or instituting a hard money standard) will be inflationary - the result being market forces overwhelming monetary policy and forcing CB rates higher. There has been an admirable amount of delaying effort, which could be enough to push the monetary implosion off that far.

Then he thinks that they wont keep rates low as long as for 2014 if deflation is apparently imminent.

2% is the target inflation rate. They don't want to exceed it but they don't want deflation either, they will inflate as much as possible without convincing others they are inflating too much. They will manipulate the figures to achieve this as they have been doing.

up up up today..

cept bitcoin and AAPL..

The correlation continues!!

Meh... it doesn't have to be all deflation all the time.  In inflationary periods, there are days the dollar gains value.  In deflationary periods, the dollar will lose some days.  Sure, it will be rough for some, but the banks holding all those extra USD reserves they got on the cheap will do just fine.

From the original gold thread, I think he gets it - he just doesn't think they'll inflate, or that inflation won't have significant effect at this point if they do.


Deflation would put the dollar back on course to reliability, but it would be so painful at this point that people would be dying in the streets and major cities would turn into warzones; much worse than Greece is now.

The Fed has a protective mechanism in place with limits on movement. Flow can be managed if people are arbitrarily limited on transfers into or out of the country at a time, say $1,000 at a time. Bank holidays would be a more drastic variant of this, preventing the backflow of USD into America. That would allow the dollar to remain functional within US borders even as it withers on the vine around the rest of the world. Holders of USD outside of the US would be left holding the bag, so-to-speak.

Meanwhile, balance of payments would be needed if international commerce were to continue. That's where gold comes in, with other precious metals acting acting as backup. Sadly, Bitcoin is still too immature to participate fully in this function, though it will benefit.


No need - officially, only the collective Eurozone holds as much or more gold than the US. All others are simply catching up. The dollar is dead internationally. America just has to realise that it isn't the only big fish in the pond and must finally start playing nice with its neighbours.

It isn't an either-or situation, but a question of balance.

Yup. 

Thanks for the vote of confidence in France, as a french citizen i'm glad you thought about us Unless you were talking about the IMF
But seriously, you really think the global monetary system will stay with the dollar a world currency for 150 yrs ?
IMO, without bigger war that what the US is doing now, it's already over, just a matter of time.