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What happened to all of the doom and gloom economic threads?

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... and resurrected from the grave...


Uh, Jesus, we call that recycling now...


Mainly plastics...





... one more thing J, we pronounce it HeyZeus now.
 
koalabear said:
It's Oblamer's advance team. :cool:
Click to expand...

lol...


Why waste your breath moaning at the crowd?
Nothing can be done to stop the shouting!
If every tongue were stilled the noise would still continue,
The rocks and stones themselves would start to sing!

OH! Bama hey bama, bama, bama, ho!
Bama hey bama OH! Bama!
 
Explaining Central Banks' Gold Purchases
Mises Daily: Friday, December 02, 2011 by David Howden

The last two years marked a significant shift in central banks' attitudes toward gold. Since 1988, central banks have been net sellers of the precious metal. Lacking convertibility of their paper currencies into the commodity, this occurrence makes perfect sense. Why hold a physical asset with costly storage fees when there is no risk that it will ever be needed? Better to hold an interest-bearing (and easily stored) asset like a government security to earn a profit in the interim. So goes the typical explanation for why central banks load their balance sheets with financial assets instead of physical ones.

Yet over the last two years a dramatic shift in gold purchases has occurred. In the third quarter of this year alone, net gold purchases by central banks amounted to 150 tons — more than double the amount of the whole yearly total of 2010. For the first time in over 20 years, central banks of the world are buying more gold than they are divesting themselves of.

Yet if central banks deal exclusively in nonconvertible (and fiat) money, what explains the sudden change of heart?

Convertibility may bring costs for a central bank, but it also has its benefits. In particular, it solved two problems:

How would central banks maintain independence from their governments?
How much money should they supply?

Without convertibility, these two issues get significantly more complicated. In this short essay, we will focus on only the first of these problems.
Click to expand...

http://mises.org/daily/5824/Explaining-Central-Banks-Gold-Purchases

Yeah, gold is stupid...

Gold purchases by central banks are completely rational responses given this independence dilemma. With the solvency of some large governments being increasingly questioned each day, investors and central banks alike are also questioning the value of their debts. Greece just gave private holders of its debt a 50 percent haircut; could the same for governments and other organizations be far off? The solvency of a growing list of countries gets longer by the week — Ireland, Portugal, Italy, Spain — not even the United States is immune to this possibility, as its own debt crisis illustrates.

Holding gold does not eliminate the possibility of negative equity for the central bank (indeed, it might even increase the odds). But given the recent past it makes for an attractive option. As countries demonstrate their difficulties in getting their debts and deficits in order and thus improving their solvency outlooks, the value of their debt becomes questionable as well.

While holding any real asset serves no direct use for a central bank, it does act as an insurance policy of sorts. The solvency of a central bank holding government debt is subordinate to the solvency of the countries whose debt it holds. For a central bank worried about the value of its assets, diversification of its assets into gold makes for a rational alternative.
Click to expand...
 
Yesterday, I read in a liberal magazine that the solution to the Italian debt crisis is for the European central bank to buy Italian bonds until the Italians are out of the crisis.

I like that, just like when I got the 0% credit card and transferred my balances to it, and then when the 0% ran out, I got another and another and so on until they didn't send the next 0% offer and I had to do something other than fill out meaningless paperwork and remember to cancel the last credit card.

I am the economic model for great government.
 
Hey Screwy Bear

Look at unemployment rate

(yes, I know its phoney)

Obama is a shoo in for re-election
 
busybody said:
Hey Screwy Bear

Look at unemployment rate

(yes, I know its phoney)

Obama is a shoo in for re-election
Click to expand...

He "saved us" from a DEPRESSION!

What part of that don't you people get!

He kept unemployment under 8% when it would have been 12% despite the lie that unemployment went to 9.2%

They never, ever, :mad: accounted for all the jobs "saved."

He was saving 750,000 jobs a week and got no fucking credit for it because everyone just wants him to fail so he looks bad right before the Chicago Olympics Opening Ceremonies which he will be Grand Marshaling...
 
Can't you guys see it and admit it?




Like when this thread began, we're in a full recovery and only the Republicans can stop us now...

Why can't you haters get on the bandwagon?
 
11%: That would be the U-3 unemployment rate if laborforce was same size as when Obama took office in Jan. 2009
 
I can prove it's recovering.

First time jobless claims went over 400K while overall unemployment went down, that means we're creating over 500K a month in jobs...




JUST AS PROMISED with the GREAT LEAP FORWARD of THE SUMMER OF RECOVERY!
 
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