The Gold and Silver Thread

[Toddsterpatriot]

Looks like "The Fed" had a hand in creating 1,500 Trillion in Derivatives.

They did? How?

By printing money for banks to play in Casinos (Stock Market) with.
The total world GDP is roughly 60-70 Trillion, The Derivatives Market is at least 1,600 Trillion.

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

 

[william the wie]

Haven't posted lately just been lurking at times. Me, I am going with GLD, REITs amd cash until the current confusion ends.

 

[Toro]

Gold and silver look interesting here. Both appear to have put in a near term bottom and may be ready to assault this years highs.

I'm wondering if the PMs are forecasting an Obama win. A Romney win would signal at least a near term perception of a more hard money policy going forward. PMs topped out around the first debate and fell when Romney surged in the polls. Now, with polls showing an Obama win more likely, PMs are moving up again. I would expect a Romney victory would lead to a sharp drop in prices.

 

[KissMy]

They did? How?

By printing money for banks to play in Casinos (Stock Market) with.
The total world GDP is roughly 60-70 Trillion, The Derivatives Market is at least 1,600 Trillion.

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

 

[Mad Scientist]

By printing money for banks to play in Casinos (Stock Market) with.
The total world GDP is roughly 60-70 Trillion, The Derivatives Market is at least 1,600 Trillion.

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

See what's happening in Greece? That's coming here.

 

[Paulie]

.

I'm wondering if the PMs are forecasting an Obama win. A Romney win would signal at least a near term perception of a more hard money policy going forward. .

Why would you think that though? Because he made a few statements about the Fed in the primary debates?

Smart money knows Romney isn't touching monetary policy.

 

[KissMy]

We won't be like Greece. It will be different. We have a printing press. Weaker currency will slow job outsourcing & may create in-sourcing which changes the dynamics. We will have many problems but other government's telling our government not to pay benefits, employees & basic services will not be one of them.

Inflation of imported product will be the problem we face. Currently we import a lot of product, that will be a problem until we import the manufacturing of many of those products.

 

[Toro]

.

I'm wondering if the PMs are forecasting an Obama win. A Romney win would signal at least a near term perception of a more hard money policy going forward. .

Why would you think that though? Because he made a few statements about the Fed in the primary debates?

Smart money knows Romney isn't touching monetary policy.

Rumours were floating around the markets a week or two ago that he would not reappoint Bernanke and instead appoint John Taylor.

 

[Paulie]

.

I'm wondering if the PMs are forecasting an Obama win. A Romney win would signal at least a near term perception of a more hard money policy going forward. .

Why would you think that though? Because he made a few statements about the Fed in the primary debates?

Smart money knows Romney isn't touching monetary policy.

Rumours were floating around the markets a week or two ago that he would not reappoint Bernanke and instead appoint John Taylor.

There's not enough distance between him and Bernanke to really make much of a difference at the end of the day.

In my opinion.

 

[william the wie]

As to PM predictions overlay Sandy induced flooding and D voting districts in VA, PA and OH. If propensity to vote stays the same Obama may have been defeated by Sandy.

 

[Toro]

Why would you think that though? Because he made a few statements about the Fed in the primary debates?

Smart money knows Romney isn't touching monetary policy.

Rumours were floating around the markets a week or two ago that he would not reappoint Bernanke and instead appoint John Taylor.

There's not enough distance between him and Bernanke to really make much of a difference at the end of the day.

In my opinion.

There is a pretty big difference. There wouldn't be QE infinity under Taylor.

 

[Toddsterpatriot]

By printing money for banks to play in Casinos (Stock Market) with.
The total world GDP is roughly 60-70 Trillion, The Derivatives Market is at least 1,600 Trillion.

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

So what? Nobody owes 1,600 trillion on those derivatives.
I bet $10 on a football game. The nominal value of my bet was over $2 billion.
Is there a problem if the counterparty fails to pay?

 

[Toddsterpatriot]

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

See what's happening in Greece? That's coming here.

Derivatives aren't debt.

 

[william the wie]

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

See what's happening in Greece? That's coming here.

Derivatives aren't debt.

But with the Euro zone banning speculative CDSs the liquidity of debt markets in Europe is likely to sink and interest rates rise.

 

[Toddsterpatriot]

See what's happening in Greece? That's coming here.

Derivatives aren't debt.

But with the Euro zone banning speculative CDSs the liquidity of debt markets in Europe is likely to sink and interest rates rise.

It's true, when governments react to a crisis, they often make things worse.

 

[percysunshine]

The unwinding of titles to debt will take a decade. Sit back, relax, and enjoy it...

 

[KissMy]

The Derivatives Market is at least 1,600 Trillion.

Yes, the nominal value is very high. So what?

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

So what? Nobody owes 1,600 trillion on those derivatives.
I bet $10 on a football game. The nominal value of my bet was over $2 billion.
Is there a problem if the counterparty fails to pay?

Yes it is. When bankers use those derivatives bets to counter real bets with deposits they lost.

 

[EdwardBaiamonte]

Why would you think that though? Because he made a few statements about the Fed in the primary debates?

Smart money knows Romney isn't touching monetary policy.

Rumours were floating around the markets a week or two ago that he would not reappoint Bernanke and instead appoint John Taylor.

There's not enough distance between him and Bernanke to really make much of a difference at the end of the day.

In my opinion.

Huge difference!! Taylor would run a much more restrictive monetary policy!! Bernanke is flooding the markets with money seemingly unaware of the the huge mal-investment he is creating; not to mention the $400 billion in lost interest on savings. The economic world is now so artifical no one can tell where we're going, but it cant be good. At best we'll have a lost decade.

 

[Toddsterpatriot]

When the derivative loser can't afford to pay the derivative winner, there will be a problem.

So what? Nobody owes 1,600 trillion on those derivatives.
I bet $10 on a football game. The nominal value of my bet was over $2 billion.
Is there a problem if the counterparty fails to pay?

Yes it is. When bankers use those derivatives bets to counter real bets with deposits they lost.

But my $10 bet has a $2 billion nominal value.

How will I pay that off if I lose?

 

[Toddsterpatriot]

Rumours were floating around the markets a week or two ago that he would not reappoint Bernanke and instead appoint John Taylor.

There's not enough distance between him and Bernanke to really make much of a difference at the end of the day.

In my opinion.

Huge difference!! Taylor would run a much more restrictive monetary policy!! Bernanke is flooding the markets with money seemingly unaware of the the huge mal-investment he is creating; not to mention the $400 billion in lost interest on savings. The economic world is now so artifical no one can tell where we're going, but it cant be good. At best we'll have a lost decade.

Bernanke is flooding the markets with money seemingly unaware of the the huge mal-investment he is creating

$1.4 trillion in excess reserves. Where is the malinvestment?