Stocks, Gold, Silver, and the printing press.

[OneShotFOGE]

Silver dropped below $20 this week. Im a little tight on cash right now, but if it stays below $20, I may pick up a few eagles later this month.

 

[rhino]

Silver dropped below $20 this week. Im a little tight on cash right now, but if it stays below $20, I may pick up a few eagles later this month.

Good idea!

 

[smokingman]

The monetary base is now well over 4 times what it was in 2008, over10 times what it was 1994,20 times what it was in 1984.

Monetary base:The total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves.

Chart updated weekly by the Federal Reserve bank of St Louis.
Monetary Base; Total - FRED - St. Louis Fed


How is that money moving through the economy?It isn't.The velocity of money is lower than any time in the history of the Federal Reserve.

Velocity of money:The velocity of money is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.
Velocity of M2 Money Stock - FRED - St. Louis Fed

 

[smokingman]

[h=1]U.S. Food Inflation Running at 22%[/h]
[h=2]The DOA tried to blame food inflation on the drought conditions in California, but last year’s drought was worse and food prices fell by -6%. The real problem is Federal Reserve monetary stimulus is stimulating inflation. I reported in "Food Price Inflation Scares the Fed” two months ago that commodity food costs were exploding on the upside. Given the lag in commodity costs impacting prices on grocery store shelves, annual U.S. food inflation is now running at +22% and rising.[/h]
U.S. Food Inflation Running at 22%

 

[IndyDave1776]

The monetary base is now well over 4 times what it was in 2008, over10 times what it was 1994,20 times what it was in 1984.

Monetary base:The total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves.

Chart updated weekly by the Federal Reserve bank of St Louis.
Monetary Base; Total - FRED - St. Louis Fed


How is that money moving through the economy?It isn't.The velocity of money is lower than any time in the history of the Federal Reserve.

Velocity of money:The velocity of money is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.
Velocity of M2 Money Stock - FRED - St. Louis Fed

Does this low velocity mean we need someone to develop the new US$+P+?

 

[smokingman]

Middle class Americans: Not so wealthy by global standards - Jun. 11, 2014

"Americans tend to think of their middle class as being the richest in the world, but it turns out, in terms of wealth, they rank fairly low among major industrialized countries," said Edward Wolff, a New York University economics professor who studies net worth.

Median US citizen net worth drops to 19th ranked in the world at $44,900,Australia soars to 1st at $219,500.

 

[poptab]

Middle class Americans: Not so wealthy by global standards - Jun. 11, 2014

"Americans tend to think of their middle class as being the richest in the world, but it turns out, in terms of wealth, they rank fairly low among major industrialized countries," said Edward Wolff, a New York University economics professor who studies net worth.

Median US citizen net worth drops to 19th ranked in the world at $44,900,Australia soars to 1st at $219,500.

Article seemed biased. Sounded like they were trying to stir up envy and promote socialism.

I'd like to see the methodology they used to calculate net wealth. Artificially inflated housing prices along with other factors... It's fairly easy to manipulate stats.

I'd like to see the size of government stats side by side too. Tax brackets, .gov % of GDP...

 

[smokingman]

Article seemed biased. Sounded like they were trying to stir up envy and promote socialism.

I'd like to see the methodology they used to calculate net wealth. Artificially inflated housing prices along with other factors... It's fairly easy to manipulate stats.

I'd like to see the size of government stats side by side too. Tax brackets, .gov % of GDP...

After reading it again I am going to agree with you.Without the methodology it is pretty much a propaganda piece about how much better off everyone in socialist utopia land is than you.
Rep inbound.
And thank you for calling it like you see it.

 

[OneShotFOGE]

Well, the market hasnt changed much since I last posted, but I do have a little more cash on hand this month. Made a small purchase of silver today. About $100 worth. Nothing crazy.

 

[smokingman]

10 year US treasury just broke below 2%.
S&P just went negative for the year as well.
Interesting times.
http://www.zerohedge.com/news/2014-...-team-sp-red-year-10y-under-1-europe-crashing

 

[poptab]

10 year US treasury just broke below 2%.
S&P just went negative for the year as well.
Interesting times.
http://www.zerohedge.com/news/2014-...-team-sp-red-year-10y-under-1-europe-crashing

I think everyone knows subconsciously that it is going to get worse before it gets better.

I'm waiting to see how the Christmas season goes.

 

[teddy12b]

Apparently Greece is having a very bad day. Ripples may come across the pond.


Greece Down - Business Insider

 

[smokingman]

I think everyone knows subconsciously that it is going to get worse before it gets better.

I'm waiting to see how the Christmas season goes.

I can tell you the headlines already "Worse than expected" or "Worse than economist predicted".

The scariest part about treasury is the knock off effect on the Social Security fund since it can buy ONLY US Treasuries and the CBO is still using the average yield of 4.5% in calculations for predicting future funding.

 

[ruger1800]

https://www.google.com/finance?q=NASDAQ:LAKE&ei=v74-VIDBFISnqQHKrIGYAw

 

[smokingman]

https://www.google.com/finance?q=NASDAQ:LAKE&ei=v74-VIDBFISnqQHKrIGYAw

I see.The high riser on the market today is the manufacturer of bio hazard gear,not very surprising.

 

[teddy12b]

If I were still trying to play the game of trying to time the market I'd be looking at investing in the bio hazard gear companies as well. If or when a rush or panic hits these products we'll look at today prices per share as bargains for pennies on the dollar.

 

[teddy12b]

Just noticed the spot price of silver is around $15.50 and seems to be heading down. I'm out of it, but when it nears the bottom I wouldn't mind buying some like I should have 5 years ago.

 

[pudly]

When it nears the bottom? Good luck identifying it at the time. I just bought some more this morning.

 

[rhino]

Just noticed the spot price of silver is around $15.50 and seems to be heading down. I'm out of it, but when it nears the bottom I wouldn't mind buying some like I should have 5 years ago.

I'm curious why it keep dropping. Gold seems to have leveled-off, but silver keeps going down. That's odd to me, especially given the industrial used for silver, but I don't really understand the economics of commodity prices and values.

$16.40 for 1-oz 0.999 silver rounds at Provident Metals a few minutes ago . . .

 

[teddy12b]

When it nears the bottom? Good luck identifying it at the time. I just bought some more this morning.

I wish I could identify the bottom, but instead I'm looking at price points. When it takes around $10 US dollars per ounce of Silver, I'm going to start looking at it a little harder.