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Gold Hits Record Highs, US Economy "Collapsed"

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Gold Hits Record Highs, US Economy "Collapsed"

Postby Just A Clay Pot » Wed Nov 04, 2009 6:36 pm

Reports are available that gold hit an all-time record of $1,099/ounce today when India's central bank bought 200 tons of gold (about 8% of the world supply.)  The purchase was made to exchange dollars for gold.  Also, the Indian Finance Minister gave warning that the economies of the U.S. and Europe had "collapsed."

OK, I missed the expectation that gold would hit $1,100/ounce by the end of October by...one dollar and four days.

However, I had expected the Dollar Index, if left alone, to be in the 72.00-74.00 range by October 31st.  It hit the low (for now) of 74.972 on October 21st.  But, we can rest assured that that index is being influenced, because historically, when gold goes up, the dollar goes down (not always, but a definate trend.)

Again, a Monopoly moment.  What do you do when you're playing a game of Monopoly and your opponent(s) have most of the property?

You pay, and pay and pay.  And, what is the only thing you can buy?

Time.

You go on playing with the hope that some random event (Chance or Community Chest) will bring you some cash.  Or, you hope that one of the other players gets in serious trouble, so that it will reduce your rent obligations as the game continues.

Well, back to real world...

The U.S. has virtually no hope of creating a cash flow that will slow down the coming hard collapse.

But, they can play for time, and they can hope to influence other players.  And, they could try to force the situations of other players.

For time:  since we made it through the elections, we can expect the "death by a throusand papercuts."  The spin of the recovered economy will be at 150%.  They have to--HAVE TO--get people out and spending money.  The more people hold on to their cash, the more the economic river dries up.  Money is made by the powerbrokers not by accumulation, but by fees and interest from exchanges.  They can only prop things up as long as the holiday season sales will allow.  I am honestly expecting mid-January to be....painful...for layoffs, firings and bankruptcies.  And, I expect this to only get worse as the year progresses.

For influence:  Obama is courting everything Islamic.  Offering aid, offering praise...if you are Islamic, you are HIS #1 friend.  Meanwhile, Israel gets the short end of the stick.  Soviet Georgia is left hanging in the wind.  India has been mistreated by the U.S. time and time again.  These actions are not without gains for the U.S.  But, at what cost?

For force:  the U.S. still, for the time being, has a mighty military.  But, as the dollar continues to lose power, eventually that military will be completely unable to fulfill it's mission.  So, the potential for use to cause a more "profitable" situation on the world stage is rising.  A military is a resource only as long as it has the people and materials to carry out warfare.  So, an attack on Iran--that would make the Saudis happy.  Or, just pull back from Taiwan, and let China retake the country.  That would make China very, very happy with us.

Use it or lose it.  Both would make Obama quite pleased.

Be watchful, brothers and sisters.  I know, the "Papercut War" can try anyone's patience.  But, we have potentially a LOT more papercuts to endure.  And, now, more than ever, the world stands on the edge of total chaos.

When the dark grows darkest, the Light shines brightest!  Remember our Savior's words.

"John 9:5" says:
As long as I am in the world, I am the light of the world.


"John 8:12" says:
Then spake Jesus again unto them, saying, I am the light of the world: he that followeth me shall not walk in darkness, but shall have the light of life.


"Matt 5:14" says:
Ye are the light of the world. A city that is set on an hill cannot be hid.


:hug:



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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby Tom67X » Wed Nov 04, 2009 6:42 pm

Very well stated.  Great analogies.  Stand and know.
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby cowgirl4christ » Wed Nov 04, 2009 9:12 pm

Just A Clay Pot wrote:Again, a Monopoly moment.  What do you do when you're playing a game of Monopoly and your opponent(s) have most of the property?


OK, since you're asking.....

IF (and that's a HUGE IF) I even make it to that point, I'd quit or "accidentally" turnover the table and say "Oops!  I didn't mean to ruin the whole game!  REALLY!  Dog gone it!  I guess the game is over...."

But, HA!  Yeah!  Imagine ME even PLAYING Monopoly in the first place.  I start counting the flies on the wall within 5 minutes....   :roflmbo:

Sorry, Stu.  I'll have a more "serious" response to your wonderful post when I can think about it.  At least, I'm SURE it's wonderful.  I got stuck at the "Monopoly" part.....
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby cowgirl4christ » Wed Nov 04, 2009 9:13 pm

Might I add that my husband and I used to play RISK with my BIL/SIL.  I'd line my armies up so that I'd get killed quickly and I wouldn't have to play anymore!
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby jessicas0778 » Wed Nov 04, 2009 9:20 pm

Bravo Stu.  The truth very well stated.

And Linda... I love you!  :ahaha:  You are so funny.  :hug:
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby cowgirl4christ » Wed Nov 04, 2009 9:23 pm

India has been mistreated by the U.S. time and time again.


What affect does that have on this whole India dumping dollars for gold, by chance?  India is making some pretty dire accusations today saying that the US and European economies have collapsed.  What's up with that?

Now, I TOTALLY know I'm a complete economic MORON, (for some reason Bob, Jenn, and Jen, and even Molly think I'm brilliant).... but, the law of economics tells me that if there's too much of something, the price goes way down.  If there's too little of something, the price goes up.  Obviously, gold's prices are going up.  Sooooooooo, doesn't that totally drag down the value of a dollar?  Why didn't that "Indian exchange" KILL the dollar?
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby Just A Clay Pot » Wed Nov 04, 2009 11:11 pm

I believe that, after years of strongarm policies towards India, they (India) have no longer any reason to even deal with us, much less be an ally.

As for why the dollar hasn't dropped like a lead balloon, especially today, one must imagine that either...
                           a)  The dollars behind the gold purchase haven't entered the general marketplace, and are still "insulated" by being held by the seller, or
                           b)  The seller was, either directly or indirectly, an agent of the U.S. Government; therefore the dollars "bypassed" the general marketplace.

There are other possibilities, but these two are where I'd be watching.  Follow the money.
                                                           :clues:



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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby Tom67X » Wed Nov 04, 2009 11:55 pm

It may simply be that India is waking to the realization that we are not who we used to be.  We are on our way down, they realize it and are making strategic moves.

Example:  if you are in a total collapse situation and you happen to have some smarts about you, you are going to strategize very quickly how you are going to make your next moves.  You can hunt, fish, make shelter, procure water, make simple repairs, etc.  But, you will need others who specialize in other things.  Thinking strictly out of logic and reason- not emotion- you are not going to want to carry dead weight- the old, the infirm, the weak, etc.  You'll need women, and you'll need some good strong kids.  This is not a time to get sentimental.

Now that is pretty extreme, but this may just be how India- and others like China- are looking at us.  We are weakened, infirm, disjointed, collapsing, and wearing out some of our usefulness going forward.  I would start shopping for other friends and means, if I were to think on a secular level.

Our comeuppance approaches... :2cent:
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby chukars » Thu Nov 05, 2009 1:10 am

Very well said Stu, and i'm afraid this time element will wear down many people as we go further into the illusion of things getting better. There are many still crying wolf, but few are listening anymore. People genuinely look at the short term picture, and do not want to hear the negative. I was discussing this today, and the general consensus is...We are the greatest nation on the planet, and we will prevail like we always have. We did it in the great depression, and we'll do it again.
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Re: Gold Hits Record Highs, US Economy "Collapsed"

Postby kentuckygirl » Thu Nov 05, 2009 2:08 am

What really makes me mad is how Christmas becomes so important suddenly, when Wall Street is thinking about PROFITS. Christmas means spending money to them, and that's all. I think that we will definitely hear lies about the economy coming back, to psych people into thinking it's okay to spend big time for Christmas. It will be a fraud too. I agree that January will be bad because the truth about the economy can't be hidden under the HOLIDAY season.

If India is selling out their dollars for gold, then when is China going to do this? Would we know if China is trading their dollars for gold or would this be something done under the table. Could the Chinese actually unload their US DEBT without destroying the US dollar first because if they did that, then they would lose too. How can we know what the Chinese are up to?

Does China have a stock market like America? I see scary times ahead.
John 10:11
I am the good shepherd: the good shepherd giveth his life for the sheep.

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