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  #11  
Old 01-30-2011, 09:37 PM
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airbil airbil is offline
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Originally Posted by Larso3 View Post
Do people get this?
Almost. And thanks for the explanation. Is there a graphic on this somewhere?
It all makes "my head numb."
What if the people of the world just told the bankers that they are no longer in business. "Sorry, Mr Banker." not
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  #12  
Old 01-30-2011, 10:35 PM
Sizzilver Sizzilver is offline
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I am a canadian and by no means an economist. I tend to put Canada and the us together for conversation purposes. Supposing our economies due start what is clearly going to be a complete collapse of our money as we know it, what affect will having nuclear and atomic weapons play? enough to scare the next person into whatever the usa needs? I understand that we are for the most part cival human beings. But if you were in desperate type situations(say going to jail for example) would you want to be Bill gates with a million in your pocket or mike tyson and broke. I know who id choose and assume the rest of the world(china) knows no matter how far in the back of their minds that north america is a force to be reckoned with that is lightyears ahead of the competition in this area. Some would say we cant get osama. we can get osama anytime we want. we are just being polite to the landscape!!! and their people. Just my 2 cents and maybe nuts...
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  #13  
Old 01-31-2011, 12:10 AM
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Zero Hedge there is quite a lot of talk about unrest spreading to Saudi Arabia...our military uses oil, just sayin

The implications for the USD reserve currency(opec, etc) make me shudder.
Kuwait is giving citizens free food for a year and 3,500 each to stay calm.

Thats what I gather from the chatter.
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  #14  
Old 02-01-2011, 07:42 PM
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Larso3 Larso3 is offline
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I don't understand how they are getting away with that.
How do they get away with it? There are many factors. Partly because systems and policies are made to be very complex (e.g., 2,000 page healthcare bill) so that the public is kept confused and apathetic (i.e., it becomes too difficult to understand so they give up). The public is also to blame for not being vigilant and self-educated.

Finance is just one of the tools reshaping human existence. There are things that cannot be controlled and the true test may be man’s consciousness and character. The future lies in wait.
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  #15  
Old 02-01-2011, 08:02 PM
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Larso3 Larso3 is offline
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Originally Posted by airbil View Post
Almost. And thanks for the explanation. Is there a graphic on this somewhere?
It all makes "my head numb."
What if the people of the world just told the bankers that they are no longer in business. "Sorry, Mr Banker." not
Here's the Fed's balance sheet as of 1/26/11.
Attached Images
File Type: jpg Federal Reserve Balance Sheet 1-26-11.jpg (29.5 KB, 25 views)

Last edited by Larso3 : 02-01-2011 at 08:07 PM.
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  #16  
Old 02-03-2011, 01:32 AM
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Larso3 Larso3 is offline
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Default I was wondering why this didn’t get many comments

I was wondering why this didn’t get many comments. Maybe it’s not that interesting, everyone agrees, or I made it too complex.

So here’s my “what’s happening for dummies” summary –

• The Congress worked with the Fed Reserve to inflate a gigantic housing bubble, using purposely loose monetary policy and extreme leverage.
• After banks made enormous amounts money packaging and selling MBS’ and other made-up derivatives, they sold what remained of the toxic shit at fantasy valuations to the American people, via The Congressional approved bailout.
• The American people got no bailout; many lost their homes or will lose them in the not too distant future.
• The Fed implemented QE2 to print money to replace the losses they are (and will) take on the toxins they bought from the banks at ridiculous valuations.
• The Fed plans on keeping interest paid from the US Treasury (American people) on the bonds they bought with printed money.
• The Congress will levy higher taxes on the American people.
• Interest rates will rise and the Fed will soon be cutoff, bankrupt, insolvent or whatever term you like. It won’t matter because the Fed was only being used to transfer astronomical amounts on money to its owners (International Bankers).
• The Treasury (American people) will need to cover the losses of the Fed, which took the losses of the banks.
• The American people are not going to like being bankrupt.
• The Super Bowl is this weekend.
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  #17  
Old 02-03-2011, 03:34 AM
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I keep hearing that there is so much debt, that even if all defense and entitlement were to be cut, it is still mathmatically impossible to pay the debt down. Is that true?

Is a revaluation likely?

I don't see the endgame without a reset. (look at Fannie and Freddie with 100% federal backstop?!)

Why is there so much buzz about the Iraq Dinar, do you know?
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  #18  
Old 02-03-2011, 10:31 AM
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Larso3 Larso3 is offline
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Originally Posted by Larso3 View Post
Rather, I suggest 30% be stored in physical gold and silver, 30% in cash and 30% in growth. Within the growth category you will have many paper options and should look to exceed the rate of inflation.

..... By maintaining a sound portfolio, you will afford yourself the most protection against a variety of financial outcomes.
http://kingworldnews.com/kingworldne..._Assets.h tml

Ben Davies’ “best portfolio” allocation -

We believe a ‘best’ portfolio, ie one that delivers a smooth return with limited risk over many different economic environments consists of:
1. 25% 12m US cash
2. 25% intermediate duration US Treasuries
3. 25% US equities
4. 25% gold

This is a very good starting point for any investor or investment manager. All asset classes have the ability to lose in different economic conditions. Cash and bonds will lose purchasing power or capital in any inflationary scenario. Equities and gold will lose in any deflationary period of monetary contraction. A diverse portfolio helps address these issues.
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  #19  
Old 02-03-2011, 10:37 AM
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Within the growth category I like to have a position in things like natural resource/agro/REE equities, but the point is allocations need to be adjusted from the old equity-bond weighting.
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  #20  
Old 02-03-2011, 10:44 AM
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Larso3 Larso3 is offline
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Quote:
Originally Posted by fledgling View Post
I keep hearing that there is so much debt, that even if all defense and entitlement were to be cut, it is still mathmatically impossible to pay the debt down. Is that true?

Is a revaluation likely?

I don't see the endgame without a reset. (look at Fannie and Freddie with 100% federal backstop?!)

Why is there so much buzz about the Iraq Dinar, do you know?
I think you're the only one reading my thread - thanks! I have to get some work done (even though I took the day off), but I'll respond regarding your q's when I get a chance.

By they way, do you have current ties to Chile? Family, property? I'd love to hear where you're looking at and how the process has gone.
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