President Trump: The NEW one and only politics thread

Harder question. ... Yes, some of the short-term paper in the typical money market is now way riskier thanks to the Fed than that kind of "safe" fund ever should hold. That is due to there being no risk-free yield when debt markets are being price administered to destroy all risk calibration.

But. ... When the Fed is running through an alphabet soup of debt monetization programs that total into the trillions of dollars to try to stop a debt bomb from imploding. ... you'd have to guess that the LAST thing in the world they would ever allow is for a money market fund to break the buck again. They are buying up junk bonds -- something nobody in their right mind could have ever guessed we'd see. So as long as they still have any power, you know they will prop up the NAV of every single money market fund to $1, because if you see those funds start to fail, it's done. The Fed is running a confidence game. That would be the ulimate confidence breaker.

The bigger problem to me is that when you get your negative real interest, your principle in that money market fund in has lost value in real terms. Then, because it is dollar based, the value of your savings is being destroyed by them -- you are a sheep being robbed by them to enable someone else to go into debt -- and now we are at the point where it's not just that, you are being robbed to enable something that is bankrupt without the Fed, to borrow more just to not default on the debt it is has already taken on off of your back.

I'm not interested in that.

 

Fort Knox? My name isn't Uncle Sam. Fort Knox is a military installation that holds the supposed gold reserves of the United States. (I said supposed, because none of us can get in there to try to audit it, even if we wanted to).

The gold I own, is privately owned. ... by me. And yes, I have it in places I can physically get. No army necessary. Although my reason for owning gold has nothing to do with whatever "system breakdown" you are talking about. I am counting on it to retain its value better than the dollar, which is being devalued to an insane degree, right in the open. To me, owning any hard asset you can think of that has actual intrinsic value to others, makes way more sense than sitting on dollars. The dollars are being drained of their value. The hard asset is way more likely to retain its value.

 

Yeah. If you price gold relative to the cost of my health insurance or relative to how much I could resell my home for in dollars. ... the dollar has lost at least half of its value since I started buying gold. Which makes sense speaking very broadly, because it takes way more than twice as many dollars to buy an ounce of gold today as it did when I started buying.

Even if you use the CPI, whose measurement methodology is continually changed for policized reasons (which makes it ridiculous), the dollar has lost more than 20 percent of its value during that time.

It makes absolutely no sense to me to willingly save in dollars, just so that an appointed price czar can come up with schemes that you can plainly see (it is out in the open) that robs you to benefit zombie companies and way overindebted consumers and a government going trillions of dollars into debt.