Supply Side Economics OVERLOAD in USA

[X.Playa]

Speaking of your red lips its the bottom protruded one, it's indicative of your kuumbo primeval DNA.

[Basra-]

Speaking of your red lips its the bottom protruded one, it's indicative of your kuumbo primeval DNA.

Lick me!

[FAH1223]

Go to 16:17 where James Rickards speaks:

https://youtu.be/Ffz9jvzHlsI?t=16m17s

[SultanOrder]

Go to 16:17 where James Rickards speaks:

https://youtu.be/Ffz9jvzHlsI?t=16m17s

That's scary!

[gurey25]

Goto love rt.
Boom. Bust is a great show, but their guests are pretty much excellent, you don't get that calibre of guest to appear often on other channels.
My favourite is kieser report, I love that he is plain nuts
It's good that his wife is next to him to keep him in check.

[LiquidHYDROGEN]

Hurry, what do you think of Thomas Piketty?

[TeeriReturns]

Hurry, what do you think of Thomas Piketty?

a socialist /marxist whoes latest book has been discredited for using fudged data on imcome growth by many mainstream economists.

[FAH1223]

Goto love rt.
Boom. Bust is a great show, but their guests are pretty much excellent, you don't get that calibre of guest to appear often on other channels.
My favourite is kieser report, I love that he is plain nuts
It's good that his wife is next to him to keep him in check.

Max Keiser is hilarious

[Jabuutawi]

America's GDP is 70% consumption driven. What it entails is demand side of the equation drives its economy. Though national debt is astronomical, there are countries willing to lend money to Uncle Sam, an indication of having full faith in U.S. Treasury bills.

[FAH1223]

[FAH1223]

America's GDP is 70% consumption driven. What it entails is demand side of the equation drives its economy. Though national debt is astronomical, there are countries willing to lend money to Uncle Sam, an indication of having full faith in U.S. Treasury bills.

US Dollar is strong due to that. Demand isn't being maintained and it will lead to recession

[FAH1223]

https://www.youtube.com/watch?v=2xDSgOMifo8
Highlights from Rickards’ speech:

“Why don’t they [Federal Reserve officials and government economists] see the risks coming? Why are they constantly surprised? Why is it happening it again? How is this even possible? The answer to that is they have the wrong models. They have the wrong intellectual frame for understanding risk. They don’t understand the statistical properties of risk. If you’ve got the wrong model, you’re going to get the wrong result every time…

“We’re at the same place today in capital markets risk management [as astronomy was when Copernicus first proposed that the planets revolved around the sun]. The new models are there. The old models don’t work. But the people who embrace the old models are wedded to them; they’re married to them. They can’t change them up…

“Your savings and retirement are at risk, because you’re relying on a system that doesn’t know what it’s doing. It’s going to take a while to change…

“There is a move afoot to take the Chinese currency, the yuan, and include it in this basket [of currencies in the Special Drawing Rights (SDRs) of the IMF]… This would amount to an anointing. This would anoint the yuan as a big-time, global reserve currency. Along with dollar, sterling, euros, and yen. It makes China a very important part of the club…

“China recently created the Asia Infrastructure Investment Bank, the AIIB. They got most of the important countries to sign up, including a bunch of countries that the United States didn’t want to sign up… This bank is going to have $100 billion in capital, and it will be able to issue bonds. They haven’t said what currency they’re going to issue them in, but my estimate is that they’ll issue them in SDRs… They’re going to do big stuff. They’re going to build railroad, natural gas pipelines, oil pipelines, highways, airports. These are big, multi-billion dollar, multi-year infrastructure projects. Guess what? If you’re Germany, you want those contracts… Those contracts are going to go to German companies, British companies, French companies. They’re not going to go to American companies by and large, because we’re not in that club. That’s why everybody joined…

“China official says they have 1,054 tons of gold. The actual number is 3 or 4,000 – maybe more. Every time I’ve formed an estimate of Chinese gold, when I got better data I was always wrong on the low side. They always had more than I thought… They’re buying it in secret…
“Why don’t we have better information? Why doesn’t China just tell us how much gold they have? Well, if you were out to buy 2,000 tons would you want people to know what you’re doing? Of course not. That’d make the price go up…

“I have gold. I recommend gold to clients. 10%, by the way. Don’t let anyone tell you I said sell everything and buy gold. I never said that. 10% is a good allocation. There are plenty of other things to do with your portfolio… I like gold, because it is physical. You can’t hack it… People think they have money. No, what you have are digital statements. You have digital wealth. The statement you get from your stock broker, the price of a stock exchange, your bank account – everything you have except for land, gold, fine art, and a few other things is digital…

“Gold is going to go to $10,000 an ounce, but not for the reasons I’ve just described… China wants to be in the big club, but the US is holding a black ball: ‘Maybe we’ll let you into our club, maybe we won’t. What kind of behavior can we expect from you?’ So China is over here building their own club [with the AIIB]… China is doing both things at once…

“What is the United States saying is the price of letting China into the club? Putting China into the SDR and giving China more votes in the IMF – that’s what they want. That’s what is in play… The White House is deliberately slow-rolling this so they can get the concessions out of China… They want to peg the yuan to the dollar. They want China to stop fighting the currency wars. They want China to stop promoting their economy and growing their exports by cheapening their currency…

“The gold is plan B. Paper money is plan A. The United States is saying to China [that if] you want to be in the paper money club, that’s fine. Come on in. We’ll give your paper money the seal of approval by including it in the SDR. The fact that you have 7-8,000 tons of gold, that’s great. That’s your admission for getting into the club…

“[This year] Let’s look for China to publicly announce how much gold they have, which will be another lie. Because they have 3 accounts. They have the People’s Bank of China (PBOC), the State Administration of Foreign Exchange (SAFE), and China Investment Corporation. They have 3 buckets to put the gold in. They will move some gold from SAFE to PBOC. They’ll announce that. It will be a lot… But they might have 2-3,000 tons over in SAFE that they don’t disclose…

“All of this is moving toward the diminution, the elimination of the dollar as an important global reserve currency. But this is not something that happens overnight… It took 30 years for sterling to be diminished to a relatively important currency… We’re in the process of destroying the dollar, but it’s something that happens slowly.

“There’s no reason for you to sit around and wait for it to happen. There are things that you can do now…

“[What the power elites] want to happen is this orderly process that I just described. It would play out over years. It would go in stages. It would involve eventually substituting SDRs for dollars. The impact of that would be inflationary. The problem in the world today is there is just too much debt and not enough growth. There is no combination of growth on current conditions and taxes that will pay off the debt, or even make the debt sustainably… But if you can inflate the currency, then it is…

“You don’t have to have 20% inflation in one year. If you do 3% a year for 22 years, you cut the value of the dollar in half. You do it in another 22 years, you cut it in half again. So 44 years, which is the time from when your children are born to when they become adults, the value of the dollar has been reduced by 75%. That’s with 3% inflation. That’s the kind of inflation they think nobody notices…

“That’s what the elites think is going to happen. Here’s what is going to happen. I think we’re going to get a catastrophic financial panic sooner than later… Sometime in the next couple years… They happen every 5, 6, 7 years. It’s been 6 years since the last one. So how close can we be to the next one? The answer is probably pretty close. When that happens, it’s probably going to be a lot worse than 2008. The reason I say that is because the system is bigger…

“1998, Wall Street bails out the hedge funds. 2008, central banks bail out Wall Street. 2018, who’s going to bail out the central banks? There’s only one clean balance sheet left in the world and that’s the IMF. They’re going to come with these SDRs by the trillions… That’s going to be very inflationary.”

[gurey25]

I don't see gold as a currency, but as commodity that can be used to protect your wealth.

If there Is a collapse of world financial system,
Those Indians obsessed with gold and Arabs and Somalis will come out pretty good.

I never thought of gold that much I have a few Kruger coins and thought about a dinar account in dubai or shanghai, but I've looked into my wife's jewellery collection and damn these are serious assets here already, alhamdulilah.
Imagine if the goldprice spike's 500% or more.

[NoAngst]

Gold produces no cash flow; it just sits there as shiny metal with almost no industrial or utilitarian value. All the gold in the world fits into 3 or 4 Olympic-sized swimming pools.

It's OK to have some gold in your portfolio for diversification but relying on gold as asset shelter for some doomsday scenario is foolhardy idea. You're always better off relying on cash flow producing assets, especially real assets that can increase their prices with inflation (think of utility companies - people will always need power no matter what).

[Jabuutawi]

I am no proponent of hawking gold, but assets do also have an "evil" side to them. Deflation has haunted the Japanese economy for a good part of a generation and those assets haven't generated growth. Quite the contrary, prices have -- including stock market -- been in all intent and purpose meandering on a flat graph for 25 years.

Utility companies stocks are good for income preservation, they pay dividends but don't expect much else from them. Diversifying in small to large growth stocks with moderate inflationary growth in the economy is a good strategy for any portfolio that looks at minimally 10 years in the horizon.

With Trump administration I will look more into companies in the infrastructure industry, financial sector, perhaps defense and less in consumer goods and hi-tech.