I do not agree with what the speaker had said, how about you?
4 comments:
Anonymous
said...
I actually tend to agree with this fella since I'm more inclined towards the Austrian View.
Oil priced in the Eur or Yen has also risen considerably though not as much when priced in USD. But the Japanese and Euro Central banks have been also aggressively debasing their money suppy - just not to the extent of US.
If you were to price oil in gold, which is really "true money" in a certain sense, you'd find that the relation is quite flat.
I really love your blog btw since I agree with many of your ideas and I check it out alot.
What do you think of buying gold now since there is a lag away from the tradiation 10:1 ratio - with gold at 800+ it should really be trading well above $1000?
Well not gold futures. I think current gold prices are lagging quite far behind and should be approximiately in the region of $1200 - $1300 if you consider the historical 10:1 ratio. But I'm not sure about your view on that one.
I doubt Fed can take any hawkish moves at the moment when they are still holding on to 400-500 billion worth in junk mortgage loans.
Ben is also known for his writings on the great depression which follow monetary expansion in lines with keynesian views. Hence though he probably has to raise rates like Volcker did - he is unlikely to do so. This makes it really bullish for gold / oil and commodities IMHO, not simply the demand supply constraints which is a longer term factor.
Anyways I think its cool that you work in a hedge fund - you have really awesome ideas... :) do you have MSN?
4 comments:
I actually tend to agree with this fella since I'm more inclined towards the Austrian View.
Oil priced in the Eur or Yen has also risen considerably though not as much when priced in USD. But the Japanese and Euro Central banks have been also aggressively debasing their money suppy - just not to the extent of US.
If you were to price oil in gold, which is really "true money" in a certain sense, you'd find that the relation is quite flat.
I really love your blog btw since I agree with many of your ideas and I check it out alot.
What do you think of buying gold now since there is a lag away from the tradiation 10:1 ratio - with gold at 800+ it should really be trading well above $1000?
Jamiee
Thanks thanks for reading and loving my blog. Hee!!!
Yes I do think that gold will rise to $1000 again. Are you talking about gold futures or gold ETF?
If you are talking about gold ETF, it good to accumulate when gold price is weak.
If you are talking about gold futures, then I need to look at the gold chart and indicators.
Well not gold futures. I think current gold prices are lagging quite far behind and should be approximiately in the region of $1200 - $1300 if you consider the historical 10:1 ratio. But I'm not sure about your view on that one.
I doubt Fed can take any hawkish moves at the moment when they are still holding on to 400-500 billion worth in junk mortgage loans.
Ben is also known for his writings on the great depression which follow monetary expansion in lines with keynesian views. Hence though he probably has to raise rates like Volcker did - he is unlikely to do so. This makes it really bullish for gold / oil and commodities IMHO, not simply the demand supply constraints which is a longer term factor.
Anyways I think its cool that you work in a hedge fund - you have really awesome ideas... :) do you have MSN?
Thank you thank you for your compliments.
I do not think Fed will start to raise interest rate soon. Europe is likely to raise interest rate earlier, so this will push down USD again.
Nikkei does look interesting to me now.
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