patrick.net

This guy makes my exact point re dollar demand around the 7 minute mark http://goldswitzerland.com/?p=17129

smaulgld says

This guy makes my exact point re dollar demand around the 7 minute mark

That was interesting. I guess we have inflation from the QE but also foreigners wanting value for their dollar.

What I also found interesting was his simple analysis that the world was out of balance regarding financial services.

Also he said that bond yields and interest rates have never been this low going back centuries.

He said financial services have become parasitical to the economy.

IOW the world is over leveraged which portends deflation. The Fed will keep it going as long as possible but at some point there has to be a rebalancing.

Its all about financial services
We dont produce more stuff we just produce more dollars

smaulgld says

Its all about financial services

We dont produce more stuff we just produce more dollars

Actually, we produce more fictitious financial products.

& we produce dollars in abundance!
http://patrick.net/?p=1248758

smaulgld says

We dont produce more stuff we just produce more dollars

There will be a re balancing willy nilly. And it is going to be ugly.

Not just regarding the financial services but with foreign trade.

If you look at it as Chris Martenson does we have peak oil, peak economy (leverage) and peak environment. I think technology can solve the energy and environment but the leverage of everything financial has got to change to sound money. Regardless of anyone's disposition, it will change willy nilly.

indigenous says

If you look at it as Chris Martenson does we have peak oil, peak economy (leverage) and peak environment. I think technology can solve the energy and environment but the leverage of everything financial has got to change to sound money. Regardless of anyone's disposition, it will change willy nilly.

good point, you can use technology to solve your energy problems but not your debt ones