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 where is the next bubble, when will it burst?
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hog wild

United States
180 Posts

Posted - 09/10/2010 :  11:28:04 AM  Show Profile  Visit hog wild's Homepage  Reply with Quote
we had the .com bubble burst in 99. people flocked to real estate an it busted in 07. now they are buying gold and other commodities. gold traded for 300-400 dollars/oz from 95-02. now its around 1250/oz. looks like a bubble to me. what do you think?

loud pipes save lives

coosa creek

USA
39313 Posts

Posted - 09/10/2010 :  4:04:56 PM  Show Profile  Reply with Quote
I agree!! I just stock up on toilet paper. That will always be in demand!!

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Wildflower

USA
4528 Posts

Posted - 09/13/2010 :  9:08:32 PM  Show Profile  Reply with Quote
I don't think the gold thing qualifies as a "bubble". It's a response to paper currencies that have no intrinsic value and can be manipulated by governments.

People who were reading the right information, began buying gold while the real estate bubble was in full swing because they knew the bubble would burst. The bubble was only possible because the Fed created easy money out of thin air.

A lot of people think the only way out of all the resulting debt is to inflate the currency. If the value of the dollar goes down drastically because of hyperinflation, no matter how much you have in savings, each of your dollars will be worth A LOT less. It's as if you threw away the money you worked so hard for.

People convert their dollars into gold in perilous times to preserve the value of their savings. If the gold rises in value, it's just a bonus. The main goal is wealth preservation.

People get out of gold when currencies are stable.

India just bought a huge amount of gold to offset their investments in American dollars. China has been buying also.

http://www.thefinancialexpress-bd.com/more.php?news_id=111756&date=2010-09-14

Best sites to learn from: www.thedailyreckoning.com and www.mises.org

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Wildflower

USA
4528 Posts

Posted - 09/18/2010 :  12:31:39 AM  Show Profile  Reply with Quote
Good article on hyperinflation:

http://www.econlib.org/library/Enc/Hyperinflation.html

One paragraph worth thinking about:

"Hyperinflations are caused by extremely rapid growth in the supply of “paper” money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining. Hyperinflations are very large taxation schemes."

Germany had severe hyperinflation after World War I. Some economists think that the horrible suffering it caused is what allowed the Nazi party to gain power. The German people were desperate. And we all know how that ended.

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Wildflower

USA
4528 Posts

Posted - 09/20/2010 :  12:19:40 PM  Show Profile  Reply with Quote
Latest headline on gold:

http://finance.yahoo.com/news/Gold-Climbs-to-Record-on-bloomberg-2548428608.html?x=0

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mountainguy

USA
2247 Posts

Posted - 09/20/2010 :  2:51:28 PM  Show Profile  Visit mountainguy's Homepage  Reply with Quote
HW,

There will be a time when it's best to sell gold, however, there will never be a time when gold is worth nothing. It has been a means of currency for over 6,000 years and has a limited supply. You can always build more houses but, you can't make more gold.


"Educate and inform the whole mass of people. They are the only sure reliance of the preservation of our freedom."
-- Thomas Jefferson

Edited by - mountainguy on 09/20/2010 2:54:47 PMGo to Top of Page

hog wild

United States
180 Posts

Posted - 09/22/2010 :  4:41:14 PM  Show Profile  Visit hog wild's Homepage  Reply with Quote
I recently heard that it costs 300-400 dollars to mine and process gold. If these costs are true it sure looks like a bubble to me. BTW MG, I would rather have my home than its present value in gold.

loud pipes save livesGo to Top of Page

William R. Jenkins

USA
3545 Posts

Posted - 09/22/2010 :  6:28:26 PM  Show Profile  Visit William R. Jenkins's Homepage  Reply with Quote
H.Wilde,I think the next bubble to burst will be the chickens of South Carolina and Steve the great.when they meet of the FB field. Gator's favorite food is chicken.WRJ

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hog wild

United States
180 Posts

Posted - 09/25/2010 :  2:19:14 PM  Show Profile  Visit hog wild's Homepage  Reply with Quote
GO GATORS !

loud pipes save livesGo to Top of Page

hog wild

United States
180 Posts

Posted - 09/26/2010 :  05:33:25 AM  Show Profile  Visit hog wild's Homepage  Reply with Quote
WRJ, the next bubble to burst is nick satans elephant. the gators don't rebuild they reload.

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mountainguy

USA
2247 Posts

Posted - 09/28/2010 :  1:57:31 PM  Show Profile  Visit mountainguy's Homepage  Reply with Quote
quote:

I recently heard that it costs 300-400 dollars to mine and process gold. If these costs are true it sure looks like a bubble to me. BTW MG, I would rather have my home than its present value in gold.

loud pipes save lives



Gold just blew past $1300.00 an ounce this morning. Whatever you do, don't buy any. It's way over priced!
wink


"Educate and inform the whole mass of people. They are the only sure reliance of the preservation of our freedom."
-- Thomas JeffersonGo to Top of Page

hog wild

United States
180 Posts

Posted - 09/28/2010 :  5:14:28 PM  Show Profile  Visit hog wild's Homepage  Reply with Quote
my guess is it has about 10% to go before she pops, todays close 1310.90/oz.... its like musical chairs, don't be caught standing when the music stops.

loud pipes save livesGo to Top of Page

mountainguy

USA
2247 Posts

Posted - 09/28/2010 :  6:00:17 PM  Show Profile  Visit mountainguy's Homepage  Reply with Quote
HW,

I was joking about gold exceeding 1300.00 and not buying any. That's what the wink 
wink
was for.

I just read today that China purchased 144 tons of gold last year and is expected to buy even more this year, if the supply holds out. From all indications it won't.

"BTW MG, I would rather have my home than its present value in gold."

Something you may want to keep an eye on is the price of gold for this year and next. Whenever the price surges like it has for the last ten years in a row, unfortunately,  means the U.S. dollar has gone down in value. If the dollar is worth less, so is the value of a home.

"Educate and inform the whole mass of people. They are the only sure reliance of the preservation of our freedom."
-- Thomas JeffersonGo to Top of Page

hog wild

United States
180 Posts

Posted - 09/28/2010 :  6:40:01 PM  Show Profile  Visit hog wild's Homepage  Reply with Quote
if I purchased 144 tons of gold I would never announce I plan on buying even more next year unless I really planned on selling instead.

loud pipes save livesGo to Top of Page

Wildflower

USA
4528 Posts

Posted - 09/29/2010 :  05:01:31 AM  Show Profile  Reply with Quote
Very timely article:

WHEN ZOMBIES BUY GOLD

By Bill Bonner


09/27/10 Baltimore, Maryland – Last week it looked like the Feds’ efforts to reflate the US economy might be working. Gold was hitting one new high after another. Stocks were going up too.

The Dow rose nearly 200 points on Friday. Gold hit $1,300, but couldn’t close at that level. When trading came to an end gold was $2 short of the $1,300 mark.

What’s up? It’s hard to know. If gold is going up, analysts reasoned, it must mean something. What? The obvious explanation is that inflation is coming.

So the advisors told their clients to buy gold. The economy must be improving they said. The recession ended more than a year ago. The recovery hasn’t been as strong as anyone wanted. But there must be a recovery underway…and it must mean that inflation and gold will go up.

We’re sitting in a JetBlue airplane as we write, heading back up to Baltimore. Each seat has a TV screen on the back of it. A few years ago, you could get away from TV by getting on an airplane. Now, there it is right in front to you, which is all part of the creeping zombification of the US. Music plays all the time. It’s in cars. It’s in shopping malls. Some people even listen to it when they work. It’s like prison or the Orwellian future where noise is blared out 24 hours a day, so you never have a chance to think.

And now there are all the Blackberries, iPhones, iPads, to say nothing of regular cellphones and portable computers.

And then, there’s TV. You go to a bar. In addition to the music, there’s often a TV screen.

With all these sources of distraction people don’t have any time to think. Who has time to wonder how the dollar has any value at all? Who worries that those pieces of paper could go the way of all trash to the dump? Who thinks about it at all? Not many people…

Instead, most people go through the day like zombies – watching TV, listening to someone else's music, surfing the Internet, chatting, schmoozing, distracting themselves.

The passengers on the plane act like zombies watching other zombies on TV, listening to music, reading airport novels.

Then, on the screen in front of us, there’s a fellow selling gold! He’s the second one we’ve seen. "Should you own gold?" is the caption on the screen. A man named Scott Carter is advising customers to buy the yellow metal. Apparently, his company has been in the business for 50 years.

Hmmm. This is something new. The last time we saw gold on TV was an ad for a fellow who was BUYING gold. "Got gold? You can get CASH." was last year’s ad. The advertiser told viewers that they should take advantage of high gold prices to get rid of their unwanted jewelry, exchanging it for cold, hard cash.

Only the cash wasn’t all that hard, after all. That was about a year ago. And today, the cash is worth about 20% less than the gold.

But who cares? We’re talking zombies here. Who cares what happens to them?

When the zombies start buying gold, though, the bull market enters its last stage. Ordinary people do not own gold now. They do not understand that the financial system is in jeopardy. And they cannot imagine that the dollar is not a safe place for their wealth.

As for inflation, they’re for it. They have mortgages to pay. And for many of them, those mortgages are higher than the value of their houses. They’d like to see their debts reduced, by inflation.

They’d like to see their assets lifted up by inflation too. And their earnings.

Okay. Inflationary increases are not "real". The real value of the assets doesn’t increase, just because nominal prices go up. But the zombies don’t know that.

Bill Bonner
for The Daily Reckoning

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mountainguy

USA
2247 Posts

Posted - 09/29/2010 :  11:26:38 AM  Show Profile  Visit mountainguy's Homepage  Reply with Quote

I'm still laughing.

Gold Bar dispensing ATM's soon to debut in Florida


ABC News

Posted: 9:45 AM
Last Updated: 1 hour and 23 minutes ago


German company Gold to Go first launched it's
gold vending machines at Abu Dhabi's Emirates Palace hotel back in May.
Now, those same machines are slated to hit the United States this year.
The first stop is Florida, followed by a scheduled expansion to Las
Vegas.

http://www.abcactionnews.com/dpp/news/state/gold-bar-dispensing-atm%27s-soon-to-debut-in-florida

"Educate and inform the whole mass of people. They are the only sure reliance of the preservation of our freedom."
-- Thomas JeffersonGo to Top of Page

   
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