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Dow Jones Drops Below 11,000!


villain_the_foe
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Short term...I'm buying I-bonds...trying to get the last of the paper bonds.

On the gold question...I'll side with Albert Einstein...

“The gold standard has, in my opinion, the serious disadvantage that a shortage in the supply of gold automatically leads to a contraction of credit and also of the amount of currency in circulation, to which contraction prices and wages cannot adjust themselves sufficiently quickly.”

As for the rest, I tend to agree with John Bogle...set the proper asset allocation and stay the course...

To those who want to learn more...http://www.bogleheads.org/readbooks.htm

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Short term...I'm buying I-bonds...trying to get the last of the paper bonds.

On the gold question...I'll side with Albert Einstein...

“The gold standard has, in my opinion, the serious disadvantage that a shortage in the supply of gold automatically leads to a contraction of credit and also of the amount of currency in circulation, to which contraction prices and wages cannot adjust themselves sufficiently quickly.”

As for the rest, I tend to agree with John Bogle...set the proper asset allocation and stay the course...

To those who want to learn more...http://www.bogleheads.org/readbooks.htm

Einstein's statement holds true to the structure of the system, not gold itself. I respect Einstein's opinion but deflationary depressions can happen with paper currency quicker and more damaging because more credit with usury attached could be distributed much more readily than it could be with Gold and no debt usury on credit because paper currency can be printed into existence and made easily attainable (along with the debt attached to that paper). This is why we have bubbles and wealth destruction. Once those debts are called in and the interest outweighs the principle then we have a contraction of the paper currency. Thats not a Gold problem, thats a usury problem. We should not be practicing usury, but jubilees. That would fix the economic problem we have rather quickly. People owe more in interest based debt than what the principle in circulation can cover and because of that many physical assets along with livelihoods will be taken from people based on debts that technically never existed because whats left is the interest that can never ever be paid. Ultimately, interest is a fraudulent practice and is also the underlying problem in which this system is based upon. The few in control win, the rest receive debt bondage for their participation.

Edited by villain_the_foe
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Einstein's statement holds true to the structure of the system, not gold itself. I respect Einstein's opinion but deflationary depressions can happen with paper currency quicker and more damaging because more credit with usury attached could be distributed much more readily than it could be with Gold and no debt usury on credit because paper currency can be printed into existence and made easily attainable (along with the debt attached to that paper). This is why we have bubbles and wealth destruction. Once those debts are called in and the interest outweighs the principle then we have a contraction of the paper currency. Thats not a Gold problem, thats a usury problem. We should not be practicing usury, but jubilees. That would fix the economic problem we have rather quickly. People owe more in interest based debt than what the principle in circulation can cover and because of that many physical assets along with livelihoods will be taken from people based on debts that technically never existed because whats left is the interest that can never ever be paid. Ultimately, interest is a fraudulent practice and is also the underlying problem in which this system is based upon. The few in control win, the rest receive debt bondage for their participation.

Pretty sure we had bubbles and wealth destruction when we were under the gold standard. There are ways we could discuss to limit the destruction caused the by governments who attempt to print money to cover their political promises but I'm sure we'd eventaully break JN forum rules. Guess we could have a useful discussion on the value of usury laws. ;)

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Money usually trumps muscle but who knows., maybe we can just nuke the rest of the world someday.

Economic might trumps military might in the long term...but China's not there yet...if your really concerned with China eventually "owning" the US your probably OK with the US printing more currency to devalue the Chinese position.

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Economic might trumps military might in the long term...but China's not there yet...if your really concerned with China eventually "owning" the US your probably OK with the US printing more currency to devalue the Chinese position.

they actually looked at who owns the US Debt. China isn't even close to the top. most of the US debt is own by Americans and American institutions. All foreign interests combined are maybe 25% - 30%.

But you hear about China owning America, don't believe it, it's just not true.

http://seekingalpha.com/article/246958-guess-who-owns-the-most-u-s-debt-not-china

saupload_to_whom_does_the_us_government_owe_money_klein_thumb1.jpg

(typo in that picture: Billion should be Trillion)

Edited by bitonti
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Economic might trumps military might in the long term...but China's not there yet...if your really concerned with China eventually "owning" the US your probably OK with the US printing more currency to devalue the Chinese position.

I'm indifferent and impatient with politics and world affairs. I don't have much faith in people in general. So whatever to what I can't control and hopefully I can work my way through what I can. Yeah hopefully China doesn't own me someday...

Edited by HessStation
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they actually looked at who owns the US Debt. China isn't even close to the top. most of the US debt is own by Americans and American institutions. All foreign interests combined are maybe 25% - 30%.

But you hear about China owning America, don't believe it, it's just not true.

http://seekingalpha.com/article/246958-guess-who-owns-the-most-u-s-debt-not-china

saupload_to_whom_does_the_us_government_owe_money_klein_thumb1.jpg

(typo in that picture: Billion should be Trillion)

We owe money to Brazil? Weird.

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The US still has the strongest military power in the world and its not even close...unless you have another definition of "rule".

Right now they don't but they are making significant progress in that area. And right now they have begun to lex some muscles. Like out defense operations in South Chinese seas have pretty much be voided by China. Not a biggie right now but its something to take note of.

They too know at the end of the day you need muscle and be ready to flex them to make people be aware of you.

So right now they cannot do anything substantial. But in 10-20 years i think we have to be wary of them!

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Right now they don't but they are making significant progress in that area. And right now they have begun to lex some muscles. Like out defense operations in South Chinese seas have pretty much be voided by China. Not a biggie right now but its something to take note of.

They too know at the end of the day you need muscle and be ready to flex them to make people be aware of you.

So right now they cannot do anything substantial. But in 10-20 years i think we have to be wary of them!

I agree. A military power has the most might when its not showing its power. The US has been exercising its military prowess for quite some time now, and with that comes alot of enemies either vocal or silent. More importantly it allows potential foes to view a portion of your cards.

I believe that a problem with China is a very bad move, though to throw out there I think all this war is retarded. But my point being... This isnt libya or Iraq with no weapons of mass destruction, no airforce, navy or standing army....just some insurgents, poppy fields and tons of gold. China are over a billion people who know what it is to work and they are competing as a super power, and no one does that with a slouch military. They are worthy adversaries in that regard.

Sometimes, you just have to know when to call it quits. I dont think that our economic situation is going to call for quits though. History shows that It never does.

Edited by villain_the_foe
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Buffet investing $5B in BAC. One thing I've learned is you never fight the big boys. DOW probably goes over 12k by the end of September. Enjoy the run up.

Buffet is an "insider". BAC some way some how will be saved, whether that is by an official statement of QE3 or some secret loan that they'll receive and we wont hear about it until 2 or 3 years down the road. Buffett investing 5 billion in BAC before the Ex-dividend date (Aug. 31) only lets me know that he knows something and he's going to get millions in kickbacks via dividends come september, which he technically doesnt pay taxes on anyway. I love how they always tell us what they're buying but never when they're selling (unless its gold).

Doesnt smell right to me at all. September may possibly be a good month however I'd get out after 9/23 when dividends are paid. I bet thats what Buffett will do, though we wont hear a word of it.

Edited by villain_the_foe
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Buffet is an "insider". BAC some way some how will be saved, whether that is by an official statement of QE3 or some secret loan that they'll receive and we wont hear about it until 2 or 3 years down the road. Buffett investing 5 billion in BAC before the Ex-dividend date (Aug. 31) only lets me know that he knows something and he's going to get millions in kickbacks via dividends come september, which he technically doesnt pay taxes on anyway. I love how they always tell us what they're buying but never when they're selling (unless its gold).

Doesnt smell right to me at all. September may possibly be a good month however I'd get out after 9/23 when dividends are paid. I bet thats what Buffett will do, though we wont hear a word of it.

I agree totally. October is going to be absolutely brutal for bulls.

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I agree totally. October is going to be absolutely brutal for bulls.

Just found out that Buffet will be making a 6% dividend kickback a year on his 5 billion dollar investment (insane). Whats so ridiculous about this is that BAC basically borrowed 5 billion at 6% yet they lend out at 4%. Talk about :face: . The sad part is this, me and you both know that this isnt going to work, and I personally think that BAC will be under $4 a share in 3 months. So, while the people running to put their money into BAC because of buffet or already had their money in the company for the downturn, not only will they ultimately lose more money in the stock but they're only getting a 0.52% dividend while Buffet get 6% because technically he just issued BAC a bailout. And Buffet can care less if the stock drops to under $4 because he still makes PROFIT given that his dividend is a whopping 6%. And for the ultimate kicker, if BAC happens to tank he gets his money first given he's a "preferred" stock holder. Talk about a sweetheart deal. Yet another reason why I dont play the game. I dont even consider myself market savvy yet this is plain as day even for me.

Edited by villain_the_foe
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