38 replies to this topic

[dharma]

while price discovery has not taken place in the gold market, there are many events taking place that will lead to a strong gold market down the road.
for starters india has scrapped the 80/20 rule , this gives importers of gold a free reign. they no longer have to export 20%of what they import. the gold bull is dependent on demand . india has given more licenses to more entities to import gold . as their gdp rises they will be the dominant figure in the gold market
china http://www.en.sge.com.cn/ is also doing more biz their exchange is growing http://gracelandjuni.../2014dec7c1.png
this is a physical exchange. they have also added more players, which means less control by their banksters.. they are opening more gold vaults. and some new ones in dubai, which is setting itself up as a gold center http://www.graceland...14dec8dmcc1.PNG

while the bugs have been pointing to sky high inflation, the reality is money velocity has been in the tank. i am seeing signs that is going to change. the fed has been reducing its balance sheet. that , @some point , will lead to labor pressures. now if the banks will take all their qe booty and start to lend it out, we may have something.
there needs to be something to get the ball rolling . we are not far away, but not quite there yet
dharma

[dharma]

keep in mind this is the ny tiimes
http://www.nytimes.c...n-age.html?_r=1
dharma

[dharma]

china has just recorded its largest trades surplus the cb of india has been able to hold off the finance ministry w/oil prices falling, this should curtail indias inflation , just maybe they will lower rates in 15. for sure lower oil prices will put more money in peoples hands. in their culture savings are in gold. its just that simple. i see december as up and a top in january. i am seeing more physical demand for gold coming out of chindia. both the chnese and indians have instituted new rules expanding the entities that can import gold. all of this equates to more demands on the miners. more bottoming process, before lift off. dharma

[dharma]

by the way , fracking is an expensive proposition. much of the junk bond market comes from loans made to frackers w/oil prices hoovering in their cost of production zone. it will put stress on the junk bond market also fracking has hired many people, it has been a source of labor growth. this is also about to reverse low oil prices, based on the worlds s/d seem to be w/us. its going to cause problems here and in canada. dharma

[goldfungus]

by the way , fracking is an expensive proposition. much of the junk bond market comes from loans made to frackers
w/oil prices hoovering in their cost of production zone. it will put stress on the junk bond market
also fracking has hired many people, it has been a source of labor growth. this is also about to reverse
low oil prices, based on the worlds s/d seem to be w/us.
its going to cause problems here and in canada.
dharma

Don't worry we'll just keep interest rates low and print more money.

[salsabob]

psss, it's not China or India



For how long can Mother Russia tap into its Dollar and Euro reserves?

http://english.capit....asp?id=2176620

Bank of Russia Seen Raising Rates Again in Battle to Stabilize Ruble

....Despite the numerous official pledges not to introduce capital controls to limit capital flight, which this year is set to exceed $100 billion for the first time since 2008, the market is preparing for some restrictions. The Bank of Russia, together with the finance ministry, has urged companies to convert their revenues into rubles in an attempt to stabilize the battered currency.

The widening yield gap between ruble-denominated bonds traded in Moscow versus London suggests that the bond market is now starting to price in capital controls by the Russian authorities, said Per Hammarlund, emerging markets strategist at SEB.

And if it has to turn to being a net seller by selling its gold reserves, ...

psss, you didn't hear it here, Mr. Snowden!

Edited by salsabob, 09 December 2014 - 12:18 PM.

[salsabob]

Has anyone looked at House of Saud barrel production? Not even a hiccup.

http://www.themalays...-to-asia-steady

Saudi Arabia to keep January crude supply to Asia steady

Those who think the House decided to punish people working the Dakotas are the same people that think the FED keeps rates low to pump the stock markets.
See "collateral damage"

_____________________

Edward, tell Vladimer that Barry sends XOxO and good luck with those pipelines thru Turkey or to China!

Edited by salsabob, 09 December 2014 - 12:40 PM.

[dougie]

i always was taught as a kid that one should let a sleeping bear lie

Edited by dougie, 09 December 2014 - 12:43 PM.

[salsabob]

while price discovery has not taken place in the gold market, there are many events taking place that will lead to a strong gold market down the road.
for starters india has scrapped the 80/20 rule , this gives importers of gold a free reign. they no longer have to export 20%of what they import. the gold bull is dependent on demand . india has given more licenses to more entities to import gold . as their gdp rises they will be the dominant figure in the gold market
china http://www.en.sge.com.cn/ is also doing more biz their exchange is growing http://gracelandjuni.../2014dec7c1.png
this is a physical exchange. they have also added more players, which means less control by their banksters.. they are opening more gold vaults. and some new ones in dubai, which is setting itself up as a gold center http://www.graceland...14dec8dmcc1.PNG

while the bugs have been pointing to sky high inflation, the reality is money velocity has been in the tank. i am seeing signs that is going to change. the fed has been reducing its balance sheet. that , @some point , will lead to labor pressures. now if the banks will take all their qe booty and start to lend it out, we may have something.
there needs to be something to get the ball rolling . we are not far away, but not quite there yet
dharma

Banks do not lend out excess reserves; these reserves (QE or otherwise) never leave the banking system. Banks lend (i.e. print money) when a willing, credible borrower walks in the door - a loan is let, a deposit is made - it's called double-entry accouting. There is probable no other simple truth about money that is as enlightening about the world in which we live. It is very very obvious from a perspective of pure logic, but only a handful of people in the world actually can grasp and accept it.

Edited by salsabob, 09 December 2014 - 12:54 PM.

[salsabob]

i always was taught as a kid that one should let a sleeping bear lie

Sleeping bear has been pooping a little too much in the forests of Ukraine, Syria, Iran, China, national waters, air space, cyberspace, and low-orbit space. Time to see if sleeping bear can put small pants back on and kick back to enjoy bolshoi dachas in many lands... or needs financial equivalent of S. Team 6.