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I voted Libertarian as well. I strongly disagree with your statement here though:
I hear you man. At least they weren't dumb enough to give another date for the audit that they won't hit.
Just giving an update on gold/silver. With the massive drop in the laborforce and bad NFP prints, goldman has stated that QE3 is now more than 50% likely to happen upon the next FOMC meeting on Sept 12th.
http://www.businessinsider.com/goldman-bad-jobs-report-puts-odds-of-qe-next-week-above-50-2012-9
Gld is up almost 2% today and about 8% in the last month. If Bernanke announces another round of asset purchases, expect to see a jump in gold/silver.
WNDEF-
Just curious here. What does WNDEF gain by announcing that they are selling the company through a pr? Are they trying to prop the share price up to hopefully get more money out of the sale?
Nice. I like seeing the Hannover House logo in the beginning of the trailer.
BBY: Up about 20% in the premarket on the claim that ex-chairman will take the company private. Good time to short?
New filings posted the other day.
http://www.otcmarkets.com/stock/EFLN/filings
At least they didn't give themselves a deadline to complete this by. Pretty disappointing that this isn't resolved yet.
Might look to add a bit at these low levels.
Contracting the money supply would indeed strengthen the dollar relative to other currencies. However, the FED wants the dollar to be weak in order to encourage spending in the united states as opposed to abroad. The problem with their logic is that during a recession, most salaries stay stagnant or are wiped out. By increasing the supply of money without increasing the amount of goods and services in society, the prices of these goods and services will increase diminishing ones purchasing poorer.
My take on his meaning...
There is a difference between money that is actually printed and money that exists in the realm of debt. Essentially, when you get a loan from a bank for a mortgage or for a business, etc, the bank is not actually giving you cash that they have in a vault. They are putting a number into your account and presto, money created which is owed back to the banks + interest. Banks can do this on the tune of 10:1.
For the purpose of your question, let's say that there is only one house in all of society. That house cost $100. That means the bank only needs $10 in the bank to give you that $100 dollar loan. The amount of money now in circulation is $110 after the loan. Then let's say the homeowner can no longer pay anything back, what is the result of the money supply, it has decreased by $110 and the bank is stuck with a house but no money.
In the financial crisis, banks were left owning houses which were propped up to an unsustainable level due to false signals provided by easy money created by the federal reserve which is worthless since what they needed was an inflow of cash, not illiquid houses selling at much lower prices then were originally bought. The federal reserve can also contract the money supply by selling its assets and not putting the money from those sales back into circulation.
Right on. I cancelled mine as well last month.
Side Note: took a small position in FAZ today. Hoping some of the problems with Barclays/BOE spill over to the US.
?? link please.
I agree. IMO gold/silver is depressed right now is b/c they are traded in usd. Since the euro is in the crapper, the dollar is perceived as strong which will be corrected soon enough.
Going to stick it out for sure and buy on dips. I made up my mind and hoping my bet pays off.
FED announces continuation of operation twist. http://www.federalreserve.gov/newsevents/press/monetary/20120620a.htm
might be a few more months before QE3.
ha my thoughts exactly. should we place side bets on when the lawsuit will be over. my guess is march 2014.
JCP: Hitting new 52 week lows after hours after President of the company Mike Francis steps down after only nine months on the job and 10 Million dollars in compensation. What a joke.
They got the title right on this one "Why I'm betting big on Europe."
Big gamble, we will see in time if he is right.
Lame. Cillo strikes again.
Well that is true, however, if this does not get trading again, EAFN will lose a lot of money since they are the largest shareholder in EFLN.
Hey malc,
Have you had a chance to go visit HHSE yet?
Very well thought out post and although our ideas don't mesh up completely, I do appreciate your thoughts.
The problem here is that I do not believe monetary policy really does much to stimulate the economy. I see it as counterproductive as it diminishes the wealth of everyone who does not get to use this money first.
I think this is where we differ fundamentally. I do not believe that consumption drives the economy. I believe that efficient production and supply of goods is what drives consumption.
If the goal is to get to maximum employment, I do not believe that spending is the what will get us to that point. What will get us to that point is for people with savings to invest in businesses which will produce jobs that are productive to the economy. When I say productive to the economy, I mean businesses which are self-sustainable (not paid for by the taxpayers) and create goods/services in an efficient manner that lower the overall costs of these goods and services. The best way for this to happen is low taxes and high interest rates.
Spending is what got our country into trouble and I don't think more spending is the answer.
Stills - you make some good points here, and for the people in charge, it is definitely tough being stuck between a rock and a hard place.
The problem right now is that our country is not productive as is evident by our massive trade imbalance. We spend too much money and rely on countries like china and japan to buy our treasuries and then screw them over by devaluing our currency. In order to pay back our debt, we have to issue new debt or print money aka inflation. Many, including our government, define inflation as increase in prices, but this is incorrect. Inflation is actually the increase in money.
What is inflation? Inflation is a tax. More specifically it is a tax on everyone who does not receive the money first. This is because higher prices are the inevitable result from inflation and with stagnant wages and higher prices, your purchasing power decreases. The people who benefit from printing money are those who can spend it first before prices increase.
How does the fed increase the money supply? Money is "injected" into the economy in one of the most fraudulent manners you can imagine. Banks and large corporations buy treasuries from the government and then sell them to the federal reserve at a premium. The federal reserve does not have money. They essentially just type a number into the banks account. So in theory, banks and large corporations have more money to spend which should trickle down into the economy, but unfortunately it doesn't work b/c as I said, the only people who benefit from inflation are those who can spend the money first.
I agree that inflation eases our debt burdens, boosts home prices, and can be stimulatory. However, I don't think this should be the goal. To give you a recent historical example, when the tech bubble burst, what happened? What happened was GW Bush decided that it would be bad for his legacy if there was a recession under his watch, so he calls up alan greenspan and says keep the interest rates low so that consumers can get cheap loans. Then they call up fannie mae and freddie mac and tell them to give homes to everyone who comes through the door. What happened then was a bubble was created from easy credit forcing home prices to artificially go up. I know it is harsh, but I think they should have allowed prices to drop (including homes) in the current recession so that they could be priced correctly in the market and not further propping up of the bubble. During hard times, it does not makes sense to make things more expensive. The "American Dream" used to be that if you work hard enough you can succeed and live a happy life. This somehow got distorted into, if you work hard enough, you can buy a house and own land.
Our country's gdp, job rate, and inflation index are incorrectly represented. Our gdp is a measure of consumption and not productivity. The cpi takes out food and commodity prices which is incredible b/c gas and food are what people rely on. I don't know about you, but 6 dollars for a box of raisin bran (two years ago it used to cost between 3 and 4 dollars) in nyc where I live is pretty frustrating and much higher than the 2% inflation rate that they tell us.
What I believe the fed should be doing is encourage savings by increasing the interest rates. People have enough gadgets and things in this country. We need to be more productive and productivity comes from savings. By decreasing our purchasing power through low interest rates, higher prices, in conjunction with high taxes, savings decreases and therefore investment in businesses decrease. This is my take on what I believe the federal reserve should do. What the government should do, I will save for another day.
My views are much more gloomy but for good reason. I believe that we have only kicked the can down the road in terms of averting a crises and have actually made things much more dangerous and tenuous moving forward. People view deflation as a bad thing, however, it isn't. Deflation allows assets to decrease in price and actually be priced correctly. This gets completely distorted when the fed prints money to prop up failing industries and keeping prices high. No group of people should have as much power as the fed, which is a private bank filled with unelected members. When the fed was created they told the government that they in theory can remove the business cycle. It has not worked yet and will never work. This is what I believe.
Moving forward, what will happen is anyone's guess.
Not sure why it didn't work, oh well.
Your exactly right, SLV and GLD move in the same manner. I have been accumulating SLV and GLD for the past 3 months in anticipation of QE3, not because I think it is the right course of action (which I don't) but because I believe the FED/Obama administration has no other options. I don't necessarily think its pure speculation as you put it, I think its an inevitability, but that is my opinion of course.
Gold and Silver are inversely linked to the USD. Therefore, if the fed prints more money, it devalues the USD and commodities such as gold and silver will get more expensive. Therefore mining companies will be able to sell their gold and silver for higher premiums.
Check out the video, its pretty informative:
www.zerohedge.com/news/implications-failed-monetary-system
I have bought NEM, SLW, ABX in the past few weeks as well. I am hoping June 19-20 we here that QE3 is coming and will get a nice jump in price.
When do you plan to head over there?
Well said.
Off the top of my head:
Questions:
Regarding Chill
1. Do you know why there is a chill and how is it being resolved?
2. Is the lawyer you hired an SEC lawyer?
3. Is there an estimated time for this to be resolved?
Regarding Businesses:
1. Has any property or businesses been officially transferred over in name to EFLN? From filings
2. How come Frank P is still part of this company?
3. How come the lawyer has yet to sign off on the current filings?
4. If you cannot resolve the chill, will you ditch the company?
Will try to get a lot more questions.
You're the man.
you're the man malc.
Malc, that would be great.
If you have some time, can you check out the washington circuit county court and take a look at the court records regarding HHSE. Would be nice to shut this guy on the board up about the lawsuits if they are nothing.
Got it. It popped up on my google news, so I wasn't sure.
http://www.variety.com/article/VR1118054357?refCatId=13
Was this posted yet?
It looks like it might get to 20 sooner than you think. MS looks pretty bad right now.
Nope, staying away from it. It is good to have goldman running your IPO because they can raise know how to raise money (which in turn means they make more). So ultimately I agree with you that I believe these social media stocks seem to be expensive.
Incredible.
Leonard paid himself another 33k and has not even touched the bank loan even though it explicitly states:
"A series of notes payable to Mark Leonard, totaling $352,250 at 5.00% per annum are subordinated to The Cowlitz County bank note."