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realmoney
1st February 2010, 07:53
More money to throw at the economy (Clear!!!)

http://finance.yahoo.com/news/Obama-unveils-383T-budget-apf-3449890447.html?x=0&.v=3

I would also expect to see more military action (and spending) in the coming years.

RM

Ringramjr1
1st February 2010, 08:52
"While Obama projects that deficits from 2011 to 2020 will add $8.5 trillion to the national debt, the administration said that figure would have been $1.2 trillion higher were it not for deficit cuts the administration is proposing..."

Well thank goodness for that! They deserve a pat on the back, don't they? LOL! What a joke.

Ernster
1st February 2010, 09:14
So this is good or bad for us silver investors? (sorry I'm a noob):p

UmassSteve
1st February 2010, 09:51
So this is good or bad for us silver investors? (sorry I'm a noob):p

Anytime the US debt rises, our currency appears weaker. As our currency weakens, the price of silver increases. This is good for us in that our investment has a higher price tag, but realistically it means very little to us in the long run in that the gains are only indicative of inflation and do not actually represent an increase in value of our investment.

For example, if everything doubles in cost, silvers price tag will double. But its purchasing power will remain constant.

We're only doing better by virtue of everyone doing worse.

AgShaman
1st February 2010, 11:23
This is why I think people should entertain thoughts about remaining nimble in the next few years.

It's like the time when you decide to teach your older brother a lesson by watering down the metal pier overlooking the lake. When he chases you on his bike, it will unfold in slo-mo horror. Everyone will be watching in horror at 1/2 time movie speed unbelieving in his lack of ability to put on the brakes and stop before going over the edge. You will be standing there knowing the inevitability of his predicament with falling off the edge into the abyss. But what does it change....you are still eventually going to get a severe beat down at the end of the show.

The drawn out period of those watching the inevitable unfold in slow motion may provide opportunities to realize gains before the economy falls off a cliff. What good does cashin' in your stack do in a hyperinflationary period where paper money has been found out by the masses to be worthless (?).

The "long kiss goodbye" period leading up to such an event may very well have two types of people:

Those watching in disbelief....and those watching and prepared for what's inevitable. People should not stop getting themselves prepared.

Curiosity will not kill the C/Kats of SS Nation!

Sakata
1st February 2010, 11:30
Anytime the US debt rises, our currency appears weaker. As our currency weakens, the price of silver increases. This is good for us in that our investment has a higher price tag, but realistically it means very little to us in the long run in that the gains are only indicative of inflation and do not actually represent an increase in value of our investment.

For example, if everything doubles in cost, silvers price tag will double. But its purchasing power will remain constant.

We're only doing better by virtue of everyone doing worse.

Actually, this may not be true. As panic sets in the price of gold and silver will likely go into a bubble and move ahead of inflation. For those who don't sell at this point your statement is probably true. But for those who are astute enough to get out close to the top of the bubble I think there is an excellent chance of getting out ahead.

Easier said than done, of course.

DaleFromCalgary
2nd February 2010, 13:25
"But for those who are astute enough to get out close to the top of the bubble I think there is an excellent chance of getting out ahead."

The big problem that I see is that if you cash out, what do you do with the cash? If you need it as part of your old-age pension, then no problem; you spend the currency on the rent and food. If you don't need the currency immediately, then where do you invest it? Certainly not in stocks or bonds or other paper. Commodities seem obvious but then again everyone else will also be ramping up oil, base metals, etcetera.

fullsafe
2nd February 2010, 13:43
"But for those who are astute enough to get out close to the top of the bubble I think there is an excellent chance of getting out ahead."

The big problem that I see is that if you cash out, what do you do with the cash? If you need it as part of your old-age pension, then no problem; you spend the currency on the rent and food. If you don't need the currency immediately, then where do you invest it? Certainly not in stocks or bonds or other paper. Commodities seem obvious but then again everyone else will also be ramping up oil, base metals, etcetera.

This why you don't try to 'cash out' at the top but instead 'spend' the silver as needed.

of one mine
2nd February 2010, 13:58
THis time things are different than in 1976. We are going to see things we thought we would never see. Its time for the tide to come about. Dont forget where the real money will be when its all over for the dollar. Not that Im all doom & gloom but You just cant ignore it anymore. I just put 40oz for sale last night on CL now Im thinking to take my ad off. WHat was it I said once before "buy N hold"