Comments on: The National Debt and the U.S. Selling Spree http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sun, 27 May 2012 09:55:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Daro http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-6001 Daro Sun, 19 Apr 2009 17:04:11 +0000 http://dailyreckoning.com/?p=14857#comment-6001 At least we're not hearing about gold again... It's now the same price it was 3 months ago. And doesn't pay any interest. At least we’re not hearing about gold again… It’s now the same price it was 3 months ago. And doesn’t pay any interest.

]]> By: charlie http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-5837 charlie Fri, 17 Apr 2009 12:29:26 +0000 http://dailyreckoning.com/?p=14857#comment-5837 To further what Tony Bonn said... Increasing the money supply doesn't cause inflation. It's increasing the overall velocity of money that causes inflation. There's more money, but the money isn't moving, so it's not causing inflation. If money eventually gets back to moving like it did in say, 2006, then there will likely be a lot of inflation, but with high unemployment and no end in sight to what banks need to keep in reserves, I don't see this happening any time soon. To further what Tony Bonn said…

Increasing the money supply doesn’t cause inflation. It’s increasing the overall velocity of money that causes inflation. There’s more money, but the money isn’t moving, so it’s not causing inflation.

If money eventually gets back to moving like it did in say, 2006, then there will likely be a lot of inflation, but with high unemployment and no end in sight to what banks need to keep in reserves, I don’t see this happening any time soon.

]]> By: Al http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-5799 Al Fri, 17 Apr 2009 04:04:09 +0000 http://dailyreckoning.com/?p=14857#comment-5799 Hello from the Great White North Would it be a profitable move to diversify from my predominately bullion based portfolio and purchase some good junior silver and gold miners? Too risky in this current market volatility? Hello from the Great White North

Would it be a profitable move to diversify from my predominately bullion based portfolio and purchase some good junior silver and gold miners?
Too risky in this current market volatility?

]]> By: tony bonn http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-5798 tony bonn Fri, 17 Apr 2009 03:26:14 +0000 http://dailyreckoning.com/?p=14857#comment-5798 "hyperinflation does not arise from banks lending too much money..." this is utter nonsense. james turk is a quack. inflation becomes effective once the banks start distributing (loaning) fed produced money and fractional expansion kicks in. this is one reason why all of the inflation mongerers fearing for hyperinflation have been proven wrong - wrong because they fundamentally do not understand the banking system. on the other hand, fed policy changes have a 12-18 month lag so if we had a normal economy inflation would be accelerating in october/november 2009. but the banks are still afraid to lend AND there isn't much borrowing power/demand. the only place where much inflation has occurred is in the bond market. bond bubble.... furthermore, all of this new money is going into government paper and the banks who are clinging to it. bubbles bernanke can throw as much money out of his helecopter but it is falling into a black hole - not be confused with his mouth.... with interest rates hovering near zero on short terms and the treasury committed to squelching the long end of the term spectrum, capital will continue to flee and evaporate - if indeed there is any left....capital destruction is very deflationary. and yes debt monetization can be inflationary if the above path is followed which is precisely why we had a housing bubble....the banks had too much money and could only funnel it into real estate. now having said all of that we still have an inflation problem using old school inflation calculation methodology....see shadow government statistics to be delivered from the lies of the government. our economic problems are capital destruction and misallocation - the inflation/deflation debate is a distracting side show. “hyperinflation does not arise from banks lending too much money…”

this is utter nonsense. james turk is a quack. inflation becomes effective once the banks start distributing (loaning) fed produced money and fractional expansion kicks in. this is one reason why all of the inflation mongerers fearing for hyperinflation have been proven wrong – wrong because they fundamentally do not understand the banking system.

on the other hand, fed policy changes have a 12-18 month lag so if we had a normal economy inflation would be accelerating in october/november 2009.

but the banks are still afraid to lend AND there isn’t much borrowing power/demand. the only place where much inflation has occurred is in the bond market. bond bubble….

furthermore, all of this new money is going into government paper and the banks who are clinging to it. bubbles bernanke can throw as much money out of his helecopter but it is falling into a black hole – not be confused with his mouth….

with interest rates hovering near zero on short terms and the treasury committed to squelching the long end of the term spectrum, capital will continue to flee and evaporate – if indeed there is any left….capital destruction is very deflationary.

and yes debt monetization can be inflationary if the above path is followed which is precisely why we had a housing bubble….the banks had too much money and could only funnel it into real estate.

now having said all of that we still have an inflation problem using old school inflation calculation methodology….see shadow government statistics to be delivered from the lies of the government.

our economic problems are capital destruction and misallocation – the inflation/deflation debate is a distracting side show.

]]> By: Mogambo Good http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-5796 Mogambo Good Fri, 17 Apr 2009 02:53:23 +0000 http://dailyreckoning.com/?p=14857#comment-5796 This is an excellent article. Mogambo smart, not dumb. Mogambo understands the over-lending of fiat money (to self) lead to inflationary spiral. Mogambo good. These deficit numbers incredibly large. Mogambo right to be scared. Mogambo now want own dollar? If Mogambo no want dollar, what to buy? Silver/gold? Inflation-protected securities? Maybe Mogambo worry about not having Treasuries, if another correction come and make dollars disappear into black hole? Gold/silver weren't much of a hedge back then--the losses are disinflationary actually. This is an excellent article. Mogambo smart, not dumb. Mogambo understands the over-lending of fiat money (to self) lead to inflationary spiral. Mogambo good.
These deficit numbers incredibly large. Mogambo right to be scared. Mogambo now want own dollar?
If Mogambo no want dollar, what to buy? Silver/gold? Inflation-protected securities? Maybe Mogambo worry about not having Treasuries, if another correction come and make dollars disappear into black hole? Gold/silver weren’t much of a hedge back then–the losses are disinflationary actually.

]]> By: Steve http://dailyreckoning.com/the-national-debt-and-the-us-selling-spree/#comment-5768 Steve Thu, 16 Apr 2009 19:23:39 +0000 http://dailyreckoning.com/?p=14857#comment-5768 Mogambo.. We are seeing what we are seeing because the U.S. started a competing website and almost sounds the same as The Daily Reckoning. I thinks its called The Daily Wreckin'n And as always, keep up the great no-work work, Mogambo. Mogambo..
We are seeing what we are seeing because the U.S. started a competing website and almost sounds the same as The Daily Reckoning.
I thinks its called The Daily Wreckin’n

And as always, keep up the great no-work work, Mogambo.

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