Where are all the gold gurus?

[TOM4CWB]

"Lol,Errol,how in the world do you believe the soverign
debt of the western world will ever be paid off?"

Cotton; Did Germany pay off their debts from the 2
WW's? NO.

Will the US be required to pay off the debt from 2 Iraq
and Afgani wars... the war on terror... I think you know
the answer. NO.

China has used QE for decades... and no one
complains... WHY?

India has put in punitive import restrictions on Gold...
which has reduced the demand and guess what... THE
PRICE Dropped! Surprise Surprise!

Cheers

[ado089]

Inflation only works when there is an underlying opportunity for expansion of the economy. Unfortunately there are now more old people than young people in most corners of the world and even though old people have more money they spend less of it. No spending = no growth = no inflation. Cash will be king for the next 10 years.

[errolanderson]

ado089 . . . totally agree with your
statement.

Government spending does not create
prolonged economic growth. This is Peter
to pay Paul economics. It has to come
from real business or the private
sector.

Central governments are desperately
trying to trigger inflation with mixed
results. But how can there be an
inflationary spiral when the average
Joe's disposal income continues to
gradually decline?

Have the wild gold bulls out there and
inflationists thought about this? A jump
in inflation and interest rates would be
a flat out disaster for the middle
class. It would trigger a massive
washout in the Cdn real estate market
for starters.

Now lets stir in China . . . . China is
at the end zone of their real estate
bubble. They are communists that are
about to get one hell of a lesson in
overheated capitalism. When the bottom
falls out in China housing/condo market,
there will be no inflationary pressures
in Canada for a very long time (10 years
plus?) as China is the key driver for
the Cdn economy.

Have the gold bulls looked beyond their
own self-serving interests?

[rhoff]

"Government spending does not create  
prolonged economic growth. This is Peter  
to pay Paul economics."

I agree Errol with that statement. Govt does not
generate wealth only productive people do. Govt
just takes that wealth and redistributes it,however
govt deficit spending does not come without
consequence. It comes in inflation because it
pushes more paper into chasing the same amount
of goods and services. You are dismissive of
inflation because the velocity is not there but that
can change the second people realize the bond
market is going to roll over them. I feel like we
should start posting clips of Milton Friedman
explaining this.

[rhoff]

You might think I'm contradicting myself but I don't
have as strong feeling in which way Gold will
trade in the short-medium term. Im not smart
enough or dumb enough to know how human
emotion will play out that precisely. I do however
know that govt is not going to cut spending until
the bond market forces it to and that's why I think
long term inflation will be a real threat.

[Hopperbin]

Errol i just had the opportunity to date a lady from Hongkong. She was here for over 10 years and told me about some of the property appreciations goings on in China and the amount of money out there we have no idea. Right now there are immigrants such as this lady selling their what we call condos she just sold hers 3 months ago, one single condo, and buying prime Vancouver property not a condo but a house in the high priced vancouver and pocketting half a million Canadian dollars in the deal for spending money. Our country is being run on immigrants money. Anyways nice lady may have a second date yet.

[Hopperbin]

With property appreciation in the likes of 50 times in the past 20 years I am not sure why they are purchasing so much gold. Seems like there are better investments than gold if your chinese. Then things can change very fast.

[Hopperbin]

As a mold maker I remember so many people talking about how they were the designers of things and got chinese companies to make the products as if the chinese were stupid cows, today their jobs are not availlable to Canadians as they are now retired the jobs are now in Mainland china but we have men retired talking about how they were smart and worked for their company to teach the chinese how to do it as if they would not be able to do it better.

[ado089]

just because you keep pouring gas on wet wood doesn't mean that it's burning. Pretty soon you'll find your self out of gas and no way to cook dinner.

[rhoff]

Are using gas as analogy to QE?Your analogy
breaks down because they won't run out of paper
to print. They won't ever get the wet logs to burn
because they by unitended consequences will just
end up blowing the whole campground sky high!

[errolanderson]

Hopper . . . 60 Minutes had an intersting 11 minute segment on Sunday nite called 'China's Real Estate Bust'

maybe someone can post it on this thread (not smart enough to figure out). or google 60 minutes overtime and surf until segment is found

Everyone in western Canada should see this interview.

[Hopperbin]

I understand this bubble as we are in a global economy. Right now we have money and people leaving china to save their money. I realized years ago when my ex had 4 houses for their family of 3, mom dad and daughter, like a house the wife where she was from, a house where they worked, a house for their place they want to retire, a house for

[Hopperbin]

This can explain a bit
http://www.creditwritedowns.com/2013/03/chinas-real-estate-bubble.html

[errolanderson]

thanks Hopper . . .

please everyone watch this video. This has
a direct impact on the Western Cdn economy

[Hopperbin]

What we don't understand is that we were the vision of the world 20 years ago. Today we can be bought out for half of what we think we are worth. Not sure about gold, sorry, but it may be anyone that owns property is going to be to the good in the future.