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Author Topic:   Testing The Financial Apologists
Taq
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Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(3)
Message 130 of 582 (904429)
12-29-2022 12:45 PM
Reply to: Message 128 by Phat
12-29-2022 7:31 AM


Re: Scare Tactics or Simply an Informed Opinion?
Phat writes:
In the case of these interviews, I trust Content over Source.
Perfect example of an echo chamber. As long as you agree with you they are a valid source.

This message is a reply to:
 Message 128 by Phat, posted 12-29-2022 7:31 AM Phat has replied

Replies to this message:
 Message 131 by Phat, posted 12-30-2022 9:20 AM Taq has not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(2)
Message 168 of 582 (904694)
01-05-2023 12:55 PM
Reply to: Message 165 by Phat
01-05-2023 11:55 AM


Re: Mandatory Debt leads to an antichrist system
Phat writes:
Government should never mandate compulsory giving beyond reasonable taxation.
Who gets to decide what reasonable taxation is?
And if the debt becomes unsustainable, we all should simply agree to wipe the slate clean rather than be under bondage to some socialist "humanitarian" bill.
What in the world are you talking about?

This message is a reply to:
 Message 165 by Phat, posted 01-05-2023 11:55 AM Phat has not replied

Replies to this message:
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Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 173 of 582 (904701)
01-05-2023 2:22 PM
Reply to: Message 172 by Phat
01-05-2023 2:07 PM


Re: Mandatory Debt leads to an antichrist system
Phat writes:
To start with, define "fair share". So if a guy at the end of the block saved up a million dollars he has to pay more than the rest of us just to fix the potholes in the street?
For centuries now, citizens of the US have considered regressive taxes to be unfair. Instead, society strongly favors progressive taxes. The more you make, the more you pay in taxes.
What guarantee do we have that the bonds will always be worth more?
Nothing but trust and history. When was the last time the US forfeited on debt payments? This is why the US has such a high credit rating.
Of course, with the yahoos about to take control of the House that could change. They seem to think forfeiting on debt is just fine.
Well, we *do* know that global population is increasing, while resources are not. We do know that the global debt is increasing and has not gone backwards ever. So again, in a fiat money system where the money is magically assigned a value by the public-at-large, do we imagine (fantasize) that exponential growth is the norm? Are we legends in our own minds?
EVERYTHING is magically assigned a value. EVERYTHING. What is it about this that you don't understand?
Can debt increase forever? Obviously not. Debt has been paid down before, and there is no reason it can't again.

This message is a reply to:
 Message 172 by Phat, posted 01-05-2023 2:07 PM Phat has replied

Replies to this message:
 Message 343 by Phat, posted 04-15-2024 2:18 PM Taq has replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 188 of 582 (909195)
03-29-2023 11:50 AM
Reply to: Message 179 by Phat
03-28-2023 7:25 PM


Re: The Debt: 3 Months Later
Phat writes:
Sometimes I think that the progressives actually want this debt tied to the public-at-large and want to make sure there is no way to get out of it.
Fantasizing about evil progressives seems to be a common thing among conservatives. Why is that?

This message is a reply to:
 Message 179 by Phat, posted 03-28-2023 7:25 PM Phat has replied

Replies to this message:
 Message 189 by Phat, posted 03-30-2023 1:07 AM Taq has replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 190 of 582 (909263)
03-30-2023 10:59 AM
Reply to: Message 189 by Phat
03-30-2023 1:07 AM


Re: The Debt: 3 Months Later
Phat writes:
The only reason that I can think of is that progressives are not always about progress
But what is it with fantasizing about progressives?
What it tells me is that you can't point to what progressives are actually doing, so you have to invent stories.
Modern Monetary Theory is a great example of foolish thinking. This whole idea that the West can continue to create more debt with no repercussions is naive and short sighted.
Modern Monetary Theory does not say that you can create an unlimited amount of debt with no repercussions. You are foolish if you think that is what MMT says.
The dollars best days are behind it.
Baloney.
quote:
The U.S. Dollar Index started 2022 in a solid uptrend. From late April through late September, the Dixie—as the index is often called—ripped to new 20-year highs. U.S. tourists traveling abroad were big beneficiaries, but the dollar’s rapid climb pressured earnings growth for U.S. companies that have overseas units.
https://www.forbes.com/advisor/investing/strong-dollar/
The US dollar is currently the strongest currency around.
There is no hard asset left that serves to stabilize the US Dollar.
There is no hard asset that stabilizes ANY currency. All currencies in all countries are fiat currencies.
Some day soon, within the next five years, the nations that have bought T-Bills will dump them back on the US and cease buying more.
WHY???? US T-bonds are considered one of the safest investments in the world.
The banking crises will slowly spread until perhaps as little as 5-10 years from now there will only be six major banks left--backed by the Federal Reserve.
Why will it spread?
Because we backed Ukraine and gave them so many weapons, we ourselves have depleted our own stocks of weapons and need to replace them.
How is that a problem? We already spend more on defense than the rest of the world combined.
Essentially, the BRICS alliance is now fully committed to bypass the US Dollar and create their own global reserve currency.
That currency would be a fiat currency just like the US dollar.

This message is a reply to:
 Message 189 by Phat, posted 03-30-2023 1:07 AM Phat has replied

Replies to this message:
 Message 192 by Phat, posted 04-01-2023 3:26 PM Taq has not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 342 of 582 (917754)
04-15-2024 1:23 PM
Reply to: Message 341 by Phat
04-15-2024 7:38 AM


Re: Financial Apologetics In 2024 And Beyond
Phat writes:
Precious metals commodities are making a sustained rally which will continue in the coming months, I feel.
The stock markets have also been on a big rally. For example, the S&P 500 is up almost 22% over the last year. My retirement fund is showing a 43% increase over the last year, so the last year has been pretty good for stocks. This makes up for the 30% loss in 2022 and a mediocre gain in 2023. The bulk of my money is in ticker QCGRIX if you want to check it out.
Gold looks to be half of gains seen in the stock markets, although gold will usually be less volatile.
Even though still minimized by mainstream media, Gold is becoming more interesting as an alternative to the Swift system of global exchange. The US weaponized the dollar, which was a mistake, in my opinion. The reaction is the rally in metals prices and is, in my humble opinion, the start of a longer rally.
Gold may work for a few rogue states that find themselves under sanctions, but there isn't enough gold in the world to be used for even a fraction of international trade.
I suspect that many nations were quite happy that the US used the dollar as a weapon, especially those European countries that are facing possible invasion in the future.

This message is a reply to:
 Message 341 by Phat, posted 04-15-2024 7:38 AM Phat has replied

Replies to this message:
 Message 345 by Phat, posted 04-15-2024 3:04 PM Taq has replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 346 of 582 (917758)
04-15-2024 3:28 PM
Reply to: Message 345 by Phat
04-15-2024 3:04 PM


Re: Financial Apologetics In 2024 And Beyond
Phat writes:
Do Fiat currencies determine the price of gold or does Gold aid in determining the *value* of fiat currencies?
Gold has value because you can trade it for fiat currencies. Gold's value is determined by how much fiat currency someone is willing to trade for it.
Why have fiat currencies broken free from the discipline of gold?
Because fiat currencies are used for more than buying gold. Even you list the value of gold as how much you fiat currency you can get for it.
Currency creation needs some sort of discipline, or the risk of inflation (or worse) looms.
Gold fails as a currency because you can't automatically make more of it in order to stimulate an economy during an economic downturn. Fiat currencies are way more flexible than gold for guiding an economy which is why fiat currencies are preferred over hard currencies.
Yes, it does take a firm hand at the wheel. This is why the US has an independent system that controls the currency, so that it isn't as strongly influenced by short term political expedience. For example, politicians would be strongly tempted to lower interest rates in order to get elected, but the independent Federal Reserve Board knows that keeping interest rates high is keeping inflation in check.
Argentina can show us what happens when currency policies are influenced by political whims.

This message is a reply to:
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Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 348 of 582 (917761)
04-15-2024 3:36 PM
Reply to: Message 343 by Phat
04-15-2024 2:18 PM


Re: 2024 Financial Apologetics
Phat writes:
From what I hear, when certain BRICS nations cash in their bonds, they then buy gold. They are now bypassing the SWIFT US Dollar system entirely and using different methods of trade.
You heard wrong.
quote:
Brazil's foreign trade in goods, some US$ 640bn annually is done mostly in US dollars, some 95%, but there are some inroads to other currencies such as the Euro and its own Brazilian Reais. These figure come from an annual report on trade operations’ currency statements compiled by Brazil’s Foreign Trade Secretariat of the Ministry of Development, Industry, Trade, and Services (Secex-MDIC), and revealed last week.
March 13, 2024
Brazil's massive goods foreign trade is in US dollars but there are incipient deals in Euros and Reais — MercoPress
95% of Brazil's international trade is still done in US dollars.
Over 30 more nations have been invited (or are trying) to join BRICS.
BRICS was invented by US foreign bond dealers who invented the acronym to represent 5 of the larger and more profitable foreign bond markets. It isn't a real thing. They may get together now and then, but it's all for show. Some of the countries are even openly hostile towards one another, such as the two big populations of India and China. Any trade league would be dominated by China, who is currently in a massive economic decline.

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Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 353 of 582 (917768)
04-15-2024 5:07 PM
Reply to: Message 349 by Theodoric
04-15-2024 3:43 PM


Re: Lies, Damned Lies and Statistics
Theodoric writes:
What other currency are they going to use?
On one side, we have a certificate that says it is good for a certain amount of gold supposedly held somewhere in some vault in Russia, China, or Iran. No, really. They promise, it's all there.
On the other side, we have US greenbacks. Not a certificate that you will be given US dollars, but real US dollars.
I think I know what 99% of people would prefer, outside of Russia, Iran, and China.

This message is a reply to:
 Message 349 by Theodoric, posted 04-15-2024 3:43 PM Theodoric has not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 356 of 582 (917781)
04-16-2024 10:51 AM
Reply to: Message 355 by Phat
04-16-2024 10:35 AM


Re: Lies, Damned Lies and Statistics
Phat writes:
You know...its funny. I figured that the progressive/elitist side would try and find a way to blame the Republican platform...especially under Herr Trump. The indicted orange one has not even stepped back into power and already is being blamed for the future demise of the US Dollar, however. (and I believe it will happen sooner rather than later.) I maintain that Yellin and the progressives do not understand the power of finance and the repercussions of weaponizing the dollar, which happened on their(your) watch.
Reminds me of the Jehovah's Witnesses who have been saying the End Times are just a couple of years away . . . for the last 140 years.
It was the Biden administration which is/was keen on sanctions. And it is Yellin as globe trotting cheerleader who is attempting to rally the world around the dollar through both veiled threats and (desperate) encouragement. You will see that I am likely right about all of this. Go ahead and blame Trump and his trade advisors, but it was you guys that pushed for global sanctions as a means of control.
Perhaps you should revisit history.
quote:
In November 2018, the United States officially reinstated all sanctions against Iran that had been lifted before the United States withdrew from the JCPOA.[58][59]
In April 2019, the United States threatened to sanction countries continuing to buy oil from Iran after an initial six-month waiver announced in November expired.[60]
In June 2019, Trump imposed sanctions on Iranian Supreme Leader Khamenei, his office and those closely affiliated with his access to key financial resources.[61][62]
On 31 July 2019, the United States placed sanctions on Iran's foreign minister, Mohammad Javad Zarif.[63]
In August 2018, Total S.A. officially withdrew from the Iranian South Pars gas field because of sanctions pressure from the United States,[64] leaving CNPC to take up their 50.1% stake in the natural gas field, of which it had already 30%.[65] It held this 80.1% share until it withdrew its investment in October 2019 due once again to the U.S. sanctions, according to Oil Minister Bijan Zangeneh and the SHANA news agency.[65]
On 19 May 2020, the United States sanctions targeted Shanghai Saint Logistics Limited, a PRC-based company that provides general sales agent services for Mahan Air. The United States claimed that Iran used Mahan Air to carry gold of fuel sales of Venezuela.[66] Also, Iran denied the allegation.[67]
On 8 June 2020, the United States imposed new sanctions of Iran Shipping Lines (IRISL) and its Shanghai-based subsidiary, E-Sail Shipping Company Ltd (E-Sail).[68]
The individuals and companies that had been added to United States sanctions list in 2018:[69]
[see wiki for long list of companies sanctioned by Trump]
United States sanctions against Iran - Wikipedia
Wall Street itself is part of the problem as they pump up stocks and bonds with increasingly inflated dollars.
In a previous post you were speaking of gold being pumped up with increasingly inflated dollars, and you spoke as if it were a good thing.
The US Debt is growing by over 4 trillion dollars per fiscal year and is well ahead of GDP. This is allowable when interest rates are low but if the interest rates go up, Houston we have a problem.
Current growth of the US debt is unsustainable. It just means we have to slow it down. Why is that a problem?

This message is a reply to:
 Message 355 by Phat, posted 04-16-2024 10:35 AM Phat has replied

Replies to this message:
 Message 358 by Phat, posted 04-16-2024 11:10 AM Taq has replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 360 of 582 (917788)
04-16-2024 11:32 AM
Reply to: Message 358 by Phat
04-16-2024 11:10 AM


Re: Lies, Damned Lies and Statistics
Phat writes:
Noted. Keep in mind the definition as being the 5 most profitable foreign bond markets.
De-dollarization: What Happens if the Dollar Loses Reserve Status?
Like I have mentioned elsewhere, there really isn't a good alternative to the US dollar. There isn't enough gold in the world to support all international trade. No other currency has enough money supply to replace the dollar. Stacked on top of that, what poor candidates for a replacement that do exist are also less trustworthy. For example, does anyone trust China not to manipulate their currency in their own favor? Or rather, does anyone trust that China will stop their continued manipulation of their currency?
It's also worth asking if the US sanctions are unfair. Russia invaded a free and democratic European country. Why shouldn't they face consequences?

This message is a reply to:
 Message 358 by Phat, posted 04-16-2024 11:10 AM Phat has replied

Replies to this message:
 Message 366 by Phat, posted 04-17-2024 2:56 AM Taq has replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 361 of 582 (917789)
04-16-2024 11:38 AM
Reply to: Message 359 by Phat
04-16-2024 11:17 AM


Re: Putin and Trump: Co-Conspirators?
Phat writes:
Gold is money...everything else is simply credit.
A $100 bill isn't credit. It's money.
Credit is when someone gives you a $100 bill today and expects you to pay back $110 in future.
FACT: China and India are buying up precious metals at an ever increasing rate.
When they sell their goods to other countries the majority of those payments will be in US dollars.
Its not that gold is going up. It is that fiat currencies are losing value relative to hard assets.
The only reason gold has value is that it can be traded for fiat currencies. If you couldn't trade gold for fiat currencies then people wouldn't buy it in bulk.

This message is a reply to:
 Message 359 by Phat, posted 04-16-2024 11:17 AM Phat has seen this message but not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


Message 368 of 582 (917810)
04-17-2024 10:43 AM
Reply to: Message 366 by Phat
04-17-2024 2:56 AM


Re: Lies, Damned Lies and Statistics
Phat writes:
As an investment and a part of a balanced portfolio, gold remains a wise choice.
I agree. A mix of stocks, commodities, and bonds is a good mix for a dependable return. My retirement is all stocks, but that is because I am playing the long game (although 65 is only 15 year away now) so I'm not worried about short term fluctuations. Once I start withdrawing in retirement I will seriously consider commodities like gold and bonds.
Hard telling which direction the world economies will go...
For many aspects, that is true. However, it isn't hard to figure out that the gold standard is dead in the water. Gold could play a minor role in specific trades between specific nations, but there is no chance that gold is going to replace fiat currencies across the world. Gold simply can't physically replace fiat currencies.

This message is a reply to:
 Message 366 by Phat, posted 04-17-2024 2:56 AM Phat has seen this message but not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 369 of 582 (917811)
04-17-2024 10:47 AM
Reply to: Message 365 by Phat
04-17-2024 2:35 AM


Re: Gold Standard
Phat writes:
We may need to re-institute backing our money with the 8133.46 tons of gold that we purportedly hold. There will be no compensation for the losers of this reset.
That would wipe out about 95% of wealth in the entire country. Why would you do that?
Current US dollar supply is 20 trillion. Our gold reserves are 500 billion.
Empires rise and Empires fall. Ours still has a ways to go, but our easiest years are behind us.
The quickest way to collapse the US economy would be to institute a gold standard. 95% of money gone in an instant.

This message is a reply to:
 Message 365 by Phat, posted 04-17-2024 2:35 AM Phat has seen this message but not replied

  
Taq
Member
Posts: 10158
Joined: 03-06-2009
Member Rating: 4.4


(1)
Message 399 of 582 (918074)
04-22-2024 11:07 AM
Reply to: Message 379 by Phat
04-20-2024 11:11 AM


Re: Theo Demands Credentials
Phat writes:
Is it not possible that I in fact know more about economic macrotrends than you do?
If you knew these things you wouldn't be going on and on about moving currencies to a gold standard, or why the US dollar will cease being the de facto world reserve currency in the near future.

This message is a reply to:
 Message 379 by Phat, posted 04-20-2024 11:11 AM Phat has replied

Replies to this message:
 Message 402 by Phat, posted 04-22-2024 11:56 AM Taq has replied

  
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