Last week I had the pleasure of speaking with Jonathon Roth in Vancouver. Good questions make for lively discussion and in a sound bite world, 20 minutes is luxurious. Here is the direct link.
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Last week I had the pleasure of speaking with Jonathon Roth in Vancouver. Good questions make for lively discussion and in a sound bite world, 20 minutes is luxurious. Here is the direct link.
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Danielle,
Good interview. I know your feelings about gold through reading your comments. Question: What do you think about the plan to use gold as a component of the collateral in a Euro bond?
This is seriously being considered. If gold is used this will change the market dynamics for gold.
Gold at 700, huh? That sure would be a mighty interesting scenario if it would come to pass. Hmmmm, I wouldn’t hold my breath on that one. Calamity pricing.
A really ugly calamity.
Agree with everything said Danielle. Have been trading selectively and focusing on conserving capital for most of past year.
I think Occupy was just a warm up. Its going to get ugly when the US has to deal with its trillion dollar deficit in a low (negative?) growth environment. At least if the Fed doesn’t print more interest rates should remain low (as there is a lot of wealth in the US) and that will help keep debt financing costs relatively low. If the Fed is insistent on trying to print their way to prosperity the US dollar will come under enormous pressure and interest rates will soar, much like in Spain and Italy now. I think you’re right that Bernanke gets this and further easing (printing) is unlikely.
As far as Occupy goes, as young people figure out what their baby boomer parents have done in terms of indebting their futures they’re not going to be happy with us. Governments have made so many promises to get elected and keep the peace with public sector unions – they have borrowed and spent very irresponsibly. It can’t continue and young people should be very mad at what we’ve allowed to happen. We have really let them down.
Americans are starting to wake up to this as we recently saw in Wisconsin. After the election in November the federal government is also going to have to get serious about putting a stop to indebting our children and grandchildren so that we can have more today than what we’re prepared to pay for. Occupy Wall Street has to move to Washington, the source of the problem.
There are many weaknesses in the US system that has allowed them to get to this point. But the root of it is that political power and influence are bought and sold in the US, and the banks are the biggest players along with the politicians. It was interesting to read the other day that JP Morgan made political contributions of $877,000 to the members of the Congessional Banking Committee who pretended to give Jamie Dimon a hard time the other day. Bottom line is the bankers (sellers of debt) and the politicians (debt junkies) are way too close. The bankers are in the debt business and their friends in Washington are their best customers (because they’re spending other people’s money). Just as the US has a separation of church and state they desperately need to separate banking and state.
EXCELLENT interview! Well done, Danielle! Interesting idea about Europe exploding being good! I think you are right if the Europeans don’t get their act together! Socialists and Germans may have more in common than it looks! They both believe in fairness and so there is a glimmer of hope there where they might be able to regulate things more and hold people accountable! Europe has a massive bureaucracy and might be too slow to act quickly enough to change direction. Devaluing currency has worked in the past! But, somehow I doubt that the stock market will see a Greece exit as a positive! 🙂
Love the new hairstyle. 🙂
Outstanding perspective as usual Danielle!
Someone above said the young people should be mad. Yes, they should be, but the people nearing retirement age lacking enough money should be enraged. The young can see these problems and have a working life to try to fix things. Those approaching retirement with little money will not have the opportunity to accumulate much.
As you suggest, we need a good cleansing of the system. BUT I fear that our inept leaders will keep printing and trying to avoid the pain – and I wonder what will ever make the system better. I think with all the debt that a total world-wide collapse might be the best option. It would be hideous but the survivors would have experience that would make it unlikely to be repeated real soon.
I’m looking forward to $700 gold. I’ve been testing the reverse gear in my truck daily to be sure I’m ready for the blessed event. Abigail of Peak Theories Research says a 50% drop could happen. OH YES, SHE DOES! http://video.cnbc.com/gallery/?video=3000072677
Personally, I doubt Obummer will allow it to happen in an election year so I’m not too hopeful for the near term.