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Something is Rotten in Europe 8/14/20

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2 hours ago, potatohead said:

This tops them both....

winklevoss twins on gold

They're not wrong. But it presently has as much relevance to the gold price as the oceans boiling away in a billion years and there being no life left to give a crap. At what gold price would that even be economical when there are miners that break even at $1,500? I don't know, maybe at $100,000 gold in 50 years it's a thing. Even 50 years may be pushing it. It's been nearly 50 years since a human left low earth orbit, when we last set foot on the moon, in 1972.

Bitcoin in the universe, unlike gold, is by definition finite. But it could also be by definition infinitely divisible, although now it just goes to 8 decimals. I struggle answering whether it matters that something is finite when it is also infinitely divisible.

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K-Wave Rider was probably the smartest. A big mess that the board lost him. regarding Sven H.: every chart is a bear flag or bearish wedge for him. He draws wedges where there are none and h

Yep, I agree ...

Fed will let Inflation run very very hot and keep rate low for longer. Only way debt can become worthless in real term and get paid. Savers will have to decide where to put their savings.  h

3 hours ago, SiP said:

I opened a small sort position in SP500 and nasdaq. Horizon, looking for small selloff within one week period.

Next week Is a Scam week where nothing really happens.

 

 

Did Buffett Just Bet Against The US? Berkshire Buys Barrick Gold, Dumps Goldman

https://www.zerohedge.com/markets/did-buffett-just-bet-against-us-berkshire-buys-barrick-gold-dumps-goldman

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10 hours ago, jp6 said:

Next week Is a Scam week where nothing really happens.

 

 

Did Buffett Just Bet Against The US? Berkshire Buys Barrick Gold, Dumps Goldman

https://www.zerohedge.com/markets/did-buffett-just-bet-against-us-berkshire-buys-barrick-gold-dumps-goldman

MBS settlement week started Thursday and ends this coming Thursday.   

Just so you know. 

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UNCLE WARREN GETS GOLD

So Uncle Warren dumps the financials and gets gold.

Even he sees the writing on the Wall for the US financial industrial complex.

And the writing says

"Not pretty not pretty at all"

In an inflationary scenario the market cap of the american banks in real terms will fall greatly.

As the real value of their capital and deposits (i.e. as measured in gold) are destroyed. 

Look at the charts of Argentinian banks if you want to see what happens.......

When the FED goes "print wild".

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4 hours ago, Jimbo said:

UNCLE WARREN GETS GOLD

So Uncle Warren dumps the financials and gets gold.

Even he sees the writing on the Wall for the US financial industrial complex.

And the writing says

"Not pretty not pretty at all"

In an inflationary scenario the market cap of the american banks in real terms will fall greatly.

As the real value of their capital and deposits (i.e. as measured in gold) are destroyed. 

Look at the charts of Argentinian banks if you want to see what happens.......

When the FED goes "print wild".

Seems so, although it is quite often said that banks profit from inflation, but your view is supported by this study here:

https://files.stlouisfed.org/files/htdocs/publications/review/86/03/Effects_Mar1986.pdf

Reminder: This study is from 1986, so not sure if it is totally valid today. 
 

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2 hours ago, SiP said:

IMG_20200815_185255.jpg

This is misleading for a couple of reasons. Purchases only lagged issuance in May-June. Purchases have kept pace since then.  

And they're not counting the MBS purchases, which are cash to dealers. The mainstream media and economists fail to understand the mechanics of POMO. Cash is cash. Makes no difference what they sell. They get cash.  They can use it to buy whatever they want. Some of it is Treasuries, some isn't. I track what they're buying.

Meanwhile the Fed has either purchased outright or funded the purchases of virtually all new Treasury issuance throughout the crisis, and for years before that, except for 2017-18.

Liquidity Trader subscribers have been in the know on this every step of the way. Get in the know! Understand the mechanics of Fed POMO and the implications for the markets! 90 day risk free trial! 

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6 hours ago, SiP said:

Fed will let Inflation run very very hot and keep rate low for longer. Only way debt can become worthless in real term and get paid.

Savers will have to decide where to put their savings. 

https://www.stlouisfed.org/on-the-economy/2020/august/what-yield-curve-control

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32 minutes ago, DrStool said:

This is misleading for a couple of reasons. Purchases only lagged issuance in May-June. Purchases have kept pace since then.  

And they're not counting the MBS purchases, which are cash to dealers. The mainstream media and economists fail to understand the mechanics of POMO. Cash is cash. Makes no difference what they sell. They get cash.  They can use it to buy whatever they want. Some of it is Treasuries, some isn't. I track what they're buying.

Meanwhile the Fed has either purchased outright or funded the purchases of virtually all new Treasury issuance throughout the crisis, and for years before that, except for 2017-18.

Liquidity Trader subscribers have been in the know on this every step of the way. Get in the know! Understand the mechanics of Fed POMO and the implications for the markets! 90 day risk free trial! 

Thanks Doc. I thought that the MBS were missing when I saw the graph. Otherwise it would have meant that tbe market would have run on igs own for the last 3 and a half months, which I can‘t imagine it could sustain.

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12 hours ago, fxfox said:

Speaking about stocks during inflation:

shouldn‘t Texas Pacific Land Trust (TPL) perform well during inflationary periods?

Real Estate is already inflated. Most likely it should hang around and will make it more affordable

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