Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

Cowboy89 · 02-28-2011, 12:32 PM

It's funny how those who actually understand and work in finance are the ones not running for the hills in this thread while the one's who understand it the least use phrases like 'elite bankers.' I suppose coming from that perspective it's easy to call other people 'elite.' Also on the silver call, why does the price of gold have any bearing on sterling silver? If you're going to make a call, make it based on something other than the historical price of another metal. Do you understand the silver market better than those actually trading it at the prices we're seeing today or is this just broad fear and hormones?

Will gold or any other metal save you in a financial meltdown scenario of the proportions being talked about here? My guess is that should there be a USD implosion, the institution you used to buy gold would have imploded as well and you won't be able to access your gold for any practical purpose. You're better off spending all your 'gold money' on a weapons locker if you truly believe the world as you know it is ending.

Back on topic, one big thing people fail to grasp is that they assume that the budget revenues in Canada and the US are static. What really caused the deficits we're seeing more than anything is lost tax revenue from corporations and individuals who were laid off, and or lost money on investments. There were spending increases on bailing out companies, and like as well, but on the revenue side there was a definate shock. 2008/09 saw companies and individuals lose money on their businesses and investments et al, 2010 saw companies/individuals make money but use their losses from 2009 to not pay as much or any in taxes in 2010. As the recovery continues taxes from these sources will recover as well. Also on a debt/GDP basis the debt numbers will look better as the economy improves. There is no intention of being 'debt-free' in the US, and to a point it's even unhealthy in the market to have too low government debt.

Also as a last resort, the fed will just keep printing money and inflate it's way to the point where a $80,000 / family share of debt doesn't seem that unreasonable. Stagflation sure, implosion of the US currency or government, no. These things have happened before and we're still here!

02-28-2011, 12:32 PM	#61
Cowboy89 Franchise Player Join Date: Feb 2006 Location: Calgary AB Exp:	It's funny how those who actually understand and work in finance are the ones not running for the hills in this thread while the one's who understand it the least use phrases like 'elite bankers.' I suppose coming from that perspective it's easy to call other people 'elite.' Also on the silver call, why does the price of gold have any bearing on sterling silver? If you're going to make a call, make it based on something other than the historical price of another metal. Do you understand the silver market better than those actually trading it at the prices we're seeing today or is this just broad fear and hormones? Will gold or any other metal save you in a financial meltdown scenario of the proportions being talked about here? My guess is that should there be a USD implosion, the institution you used to buy gold would have imploded as well and you won't be able to access your gold for any practical purpose. You're better off spending all your 'gold money' on a weapons locker if you truly believe the world as you know it is ending. Back on topic, one big thing people fail to grasp is that they assume that the budget revenues in Canada and the US are static. What really caused the deficits we're seeing more than anything is lost tax revenue from corporations and individuals who were laid off, and or lost money on investments. There were spending increases on bailing out companies, and like as well, but on the revenue side there was a definate shock. 2008/09 saw companies and individuals lose money on their businesses and investments et al, 2010 saw companies/individuals make money but use their losses from 2009 to not pay as much or any in taxes in 2010. As the recovery continues taxes from these sources will recover as well. Also on a debt/GDP basis the debt numbers will look better as the economy improves. There is no intention of being 'debt-free' in the US, and to a point it's even unhealthy in the market to have too low government debt. Also as a last resort, the fed will just keep printing money and inflate it's way to the point where a $80,000 / family share of debt doesn't seem that unreasonable. Stagflation sure, implosion of the US currency or government, no. These things have happened before and we're still here!