China devalues currency 2%. Gold up

[Boston.Knight2]

China devalues their currency 2% last night. Things are getting desperate over there. The next leg of the currency wars start to heat up.

In other news, Goldman Sachs and HSBC bought 7.1 tons of physical gold. Do what the banks do, not what they say.

http://seekingalpha.com/article/342...-sachs-and-hsbc-buy-7_1-tons-of-physical-gold

 

[anon_x731qvsnsyb8i]

It's absolutely impossible that a single-party technocratic country can endanger the USA's well-being.***

 

[Boston.Knight2]

Russia, India, Thailand and others expected to devalue currency via interest rate cuts, money printing and other measures. The long expected currency war is finally starting to heat up. Look for the US to not do the September rate hike, and the dollar to continue to move higher.

China and Russia are ok though. They are accumulating all the global gold output while the West capitulates on monetary metals. Rumor has it that down the road they will torpedeo the dollar with their own gold backed currency.

 

[anon_x731qvsnsyb8i]

Russia, India, Thailand and others expected to devalue currency via interest rate cuts, money printing and other measures. The long expected currency war is finally starting to heat up. Look for the US to not do the September rate hike, and the dollar to continue to move higher.

China and Russia are ok though. They are accumulating all the global gold output while the West capitulates on monetary metals. Rumor has it that down the road they will torpedeo the dollar with their own gold backed currency.

I've been saying this for f'ing 3 years.

 

[1ofTheseKnights]

Yet gold sellers will still take my worthless sham dollars don't they know better?!

 

[goodknightfl]

Market tanking today.

Knowing our politicians, think I will tie up most of my cash in pork futures..

 

[UCFEE]

Russia, India, Thailand and others expected to devalue currency via interest rate cuts, money printing and other measures. The long expected currency war is finally starting to heat up. Look for the US to not do the September rate hike, and the dollar to continue to move higher.

China and Russia are ok though. They are accumulating all the global gold output while the West capitulates on monetary metals. Rumor has it that down the road they will torpedeo the dollar with their own gold backed currency.

Gold is an intrinsically worthless rock, let Russia and China accumulate all they want. Shit, sell them our gold reserves and then tank its value via psychological "corrections".

 

[UCFKnight85]

Gold is an intrinsically worthless rock, let Russia and China accumulate all they want. Shit, sell them our gold reserves and then tank its value via psychological "corrections".

LOL

Gold has served as a currency since the moment man found gold and realized that it's a finite resource and easily tradable. Totally worthless!

I'm not a BUY GOLD! fanatic like Boston, but I realize that gold has a valuable place in the asset class and can serve as a currency if the fiat monetary system ever goes tits up.

 

[UCFEE]

LOL

Gold has served as a currency since the moment man found gold and realized that it's a finite resource and easily tradable. Totally worthless!

I'm not a BUY GOLD! fanatic like Boston, but I realize that gold has a valuable place in the asset class and can serve as a currency if the fiat monetary system ever goes tits up.

Man has made a lot of progress since they realized gold was a good metal to use as a currency. If the current monetary system does collapse, there will be a lot more substitutes for currency than gold.

Its value is driven purely from human psychology... including the fears you mention.

 

[Bob the Citronaut]

The new currency will be what ideas you can contribute to the new utopia. Tangible possessions are worthless.

 

[UCFWayne]

Been hitting the local pot dispensary hard today EE?

 

[UCFKnight85]

Once we get on board with EE's visions, currency will consist of good thoughts and hugs*

 

[UCFEE]

The new currency will be what ideas you can contribute to the new utopia. Tangible possessions are worthless.

I think you're being sarcastic, but your actually kind of correct.

 

[Bob the Citronaut]

I will give you four 15 second hugs for a new car.

 

[UCFEE]

No deal

 

[UCFWayne]

How about 5 hugs and a high five for whatever it is you are smoking?

 

[Ace of Knights]

Gold? Just give me some food, land, and ammunition. I'll be rich!!!!

 

[Sir Galahad]

Man has made a lot of progress since they realized gold was a good metal to use as a currency. If the current monetary system does collapse, there will be a lot more substitutes for currency than gold.

Its value is driven purely from human psychology... including the fears you mention.

Let me guess, you're a bit coin guy.

 

[mach3ucf]

Retirement here I come!!

 

[mach3ucf]

Still have plenty of the good stuff from 2006.. I remember buying a lot of it in the mid to upper $500s.
I sold some at 1850+ I wish i sold all of it, but.. hey everything in life is a catch 22.
I will say I have been buying more of it lately, I think the election of 2016, and what happens in the coming months/years will be interesting..

 

[ChrisKnight06]

Serious question. If shit were to ever truly hit the fan, what good does a shiny metal do you? An extra pair of shoes or a shovel might be worth more no? Maybe I'm missing something and only considering true end of days scenarios but that's the picture I get hearing some people describe it.

#BUYKOOLAIDPACKETS

 

[1ofTheseKnights]

Shit is never hitting the fan. But I like this kinda kook talk since it makes my Libertarian kook talk look sane.

 

[UCFKnight85]

Serious question. If shit were to ever truly hit the fan, what good does a shiny metal do you? An extra pair of shoes or a shovel might be worth more no? Maybe I'm missing something and only considering true end of days scenarios but that's the picture I get hearing some people describe it.

#BUYKOOLAIDPACKETS

Immediately after shit hitting the fan, yes it won't really matter what gold you do or don't have. What will matter is what land you can lay claim to, weapons available, and food.

Later on though, people WILL have to start trading again. And as always, instead of just straight bartering, people tend to opt for a more easily tradable common currency. Gold has typically always filled that void since 1.) there's enough of it to trade with 2.) it will always hold its' value since its a metal and it's a finite resource. You can't print more gold.

 

[Boston.Knight2]

The thing that a physical asset backed currency brings to the table is fiscal discipline. Today, we solve any kind of problem with rampant money printing. Moral hazard is a thing of the past. Markets aren't allowed to clear, and we're in a constant state of bubbles and over-capacity.

@ChrisKnight06 - your rational for why gold doesn't matter can have the same said about a baseball card collection, a piece of art, bitcoin, or anything else. Why does it have value? Because the market says so, and in the case of gold have said so for 6000 years and more. In the East, gold is still a prized and treasured asset. They haven't been brainwashed like the dollar happy Americans have. If there is any one thing I fear can bring down the mighty dollar, it is a physical asset backed currency from China/Russia .

 

[Bob the Citronaut]

Serious question. If shit were to ever truly hit the fan, what good does a shiny metal do you? An extra pair of shoes or a shovel might be worth more no? Maybe I'm missing something and only considering true end of days scenarios but that's the picture I get hearing some people describe it.

#BUYKOOLAIDPACKETS

Jacoby will be a god after Armageddon.

 

[UCFWayne]

Water, food, shelter, means to protect those. That is what will matter after shit hits the fan. Hopefully, it never comes to that.

 

[Boston.Knight2]

Keeping thread on subject: China devalued it's currency again for a second night in a row last night. This after publicly saying the first event was a "one time" outlier and won't happen again. It gets even better, after they intervened the currency started free falling, so they had to intervene in the other direction, selling dollars to prop up the currency.

It's like they are driving a fully loaded double rig down a 20% incline and only have a handbrake to try to slow things down. This could mark the end of the four year old bear market in gold, with miners still down 80 and 90% from the highs.

 

[UCFKnight85]

IMO, the Chinese quasi-free market experiment is coming to a very painful turning point. They had believed for a long time that they can maintain a centrally planned Communist government while allowing certain "free market activity" so long as it benefited the high rollers and pumped new wealth into the coffers.

Well, it's not a clusterf*ck. The Chinese allowed for a "more free" stock market finally and watched it rise 80%, only to fall 30%, during which the government took control over the market, didn't allow anyone to sell shares, and artificially inflated it by mandating buying. They want a stock market but only will allow it to go in one direction.

Their growth is slowing too. They'll be lucky to eek out 5% gain this year.

 

[1ofTheseKnights]

Lol so u go 6,000 year history of gold, then u give a shit about day to day fluctuations. Seems legit.

 

[HuffyCane]

Everything you need to know about the Chinese economy can be learned from watching Australian and Singapore investors -- who have been running away screaming for the last two years. As for the gold being bought up. Have fun with that. America, American business interests, and those we owe other than the Chinese will never allow a situation where a gold stockpile could lead to an alternative currency. We will just change the trading rules and eff them over. Doubt me? Google the Hunt brothers or lets talk about Japan trying to leverage the same thing in the late 80s. If that didnt work, there is always war. And don't underestimate the American ability to provoke a war for the purpose of market manipulation. We've been doing it for centuries.

 

[1ofTheseKnights]

And don't underestimate the American ability to provoke a war for the purpose of market manipulation. We've been doing it for centurie

Nah it's fer freedom it ain't free!!!

 

[UCFEE]

IMO, the Chinese quasi-free market experiment is coming to a very painful turning point. They had believed for a long time that they can maintain a centrally planned Communist government while allowing certain "free market activity" so long as it benefited the high rollers and pumped new wealth into the coffers.

Well, it's not a clusterf*ck. The Chinese allowed for a "more free" stock market finally and watched it rise 80%, only to fall 30%, during which the government took control over the market, didn't allow anyone to sell shares, and artificially inflated it by mandating buying. They want a stock market but only will allow it to go in one direction.

Their growth is slowing too. They'll be lucky to eek out 5% gain this year.

Do you think that "free market" forces that push a stock market to values beyond what business fundamentals can support is a healthy thing? Not saying the Chinese interference is necessarily a good thing, but free market failures do need correction or a lot of people end up losing.

 

[Boston.Knight2]

Chinese aren't the only ones that are interfering with free markets. The entire world is doing it, albeit the Chinese take it to an entirely different level. It's very hypocritical for the IMF and other government bodies to scold China but do it themselves.

 

[UCFWayne]

I recently helped China's child labor out by buying a counterfeit Orlando City jersey. Got it customized with name and number for $20 as opposed to $100+. Sorry didnt see any counterfeit UCF football jerseys, just basketball ones.