Martin A. Armstrong - Economics

[Paul]

http://armstrongeconomics.com/2013/09/2 ... inflation/

"Forbes has revealed a study that was published in the Financial Analysts Journal, which examines six different explanations for why gold prices rise and fall. The conclusion is that the assumptions of most investors sold to them by hard-money advocate just do not correlate to the historical data. Gold does not rise during times of inflation, or serve as a hedge against a collapsing dollar. Exhaustive correlations prove those assumptions have been sales-pitches only. Forbes interestingly explained: “The most likely explanation for why gold prices go up is because gold prices are going up.”

The passion behind gold is amazing despite the studies and facts. Any empirical evidence offered is attacked as conspiracy or some other nonsense. Then they slander me saying “I forgot the people who go me out” when it was the Supreme Court ordering the government to explain what they were doing that forced them to end the contempt. I have thanked all of those who supported me. I continued to provide info free. I did not turn my back on my supporters. Yet some of these people are simply mad that I said gold would decline and then accused me that it did because I said so.

The real man smiles in trouble, gathers strength from distress, and grows brave by reflection. The coward frowns and is unhappily with events that go against him, blames everyone else for his failures, cowards in the corner fearing the light of day, and clings to ill-founded concepts never reflecting upon his errors or accepting responsibility.

Gold is a market – trade it like it is and you will make far more money than yelling, screaming, or pontificating."

[Paul]

http://armstrongeconomics.com/2013/09/2 ... or-of-all/

QUESTION: Martin,

The thing that gets me is when so-called precious metal “experts” say such thing as the silver inventory is very depleted at the COMEX or the gold inventory is very depleted and someone can come in and purchase up all the remaining inventory and then you have a default. come on , really, the seeds they sow. however,

I would like to hear your opinions on some of this. I know you have stated matters that gold is for insurance against a fall of the monetary system , not so much for inflation or the dollar .

Thank you ,

Vince

ANSWER: The COMEX is not the only storage facility. They can move any commodity into “official” storage and move it out. They have used this trick from the 1970s in grains. They can move metals from New York to London to create the impression prices should rise. That is what they did for the Buffet silver manipulations. It is the oldest game in town and it is not restricted to metals. Look at the inventories when gold crashed from 1980. The “official” inventory declined with the price. Gold will rise ONLY when all the markets are lined up. Then capital will move into all sectors of the commodities once again. These people desperate to see metals, create wonderful images that the world will collapse by tomorrow. It just does not work that way. Gold cannot rally until the capital flows begin to shift now that the German elections are done. We are still waiting for the Debt Ceiling issue that should be resolved by early October.

[Indiana Jones]

Toen ik vandaag DIT las .... moest ik opeens aan DIT denken. Tuurlijk verwoordt Armstrong het beter dan ik in november 2011 richting Blondie deed, vlak voordat hij hier zijn eurofreegold gebed beëindigde met (What a load of rubbish. My questions were only ever for you and Paul to clarify your positions. On the occasions either of you did respond to these you made less and less sense. I challenge any reader to make sense of your comments. I couldn’t do it (despite spending considerable time trying), thus concluded I was wasting my time. There are far more valuable things I could be doing with my time than attempting to do what appears to be the impossible in satisfying you.) .... maar ik schreef in andere bewoordingen feitelijk hetzelfde als Armstrong .... helaas tegen dove oren. Dus reageerde Blondie als onderstaand .....

[Indiana Jones]

Posted on September 29, 2013 by Martin Armstrong

Gold Lending Could Stop in London



Many of the Goldbugs will be happy to hear that the London Bullion Market Association (LBMA) says it might start charging member banks more or even dissolving the Gold Forward Offered Rates (GOFO) – the rate at which dealers will lend gold against US dollars – due to new financial market regulations. The push for regulation stems from the Libor (London Interbank Offered Rate) manipulation scandal in 2012. The International Organisation of Securities Commissions (IOSCO) has been looking at how to supervise market benchmark setters.

The truth behind gold lending was also the expansion of the market and added liquidity. During the 1970s, the way OPEC members could legally earn interest under Islamic law was to “buy” gold and “sell” it forward collecting the difference that was not formally called interest. The OPEC nations ran their money in gold in this manner and that helped create the liquidity to launch gold as a viable futures contract before 30-year bonds hit in 1977 and even the S&P500 futures that did not appear until 1985. It was gold that was the leader in creating an international marketplace. If gold can no longer be used in this manner, there will be liquidation of gold holdings by those who still use it to park money and earn unofficial interest for religious reasons.

The Chairman of LBMA told Reuters reporters on Sunday that the new principles require the body to “look at how data is collected, how it’s recorded, who is administrating it.” If members decide that they “don’t need to spend more money on regulatory affairs [...] then the GOFO might not exist.”

This could be bearish for gold and actually reduce its liquidity. Money has parked in gold for religious reasons. If there no possibility of income, there is no reason to park cash in gold for religious institutions. Some will immediately disagree and claim money is there because it’s bullish on gold. That is like saying everyone in New York is a banker. In any market, people buy for a variety of reasons. It is NEVER a single act that causes all people to buy or sell. You cannot reduce it to a single cause and effect.

[Dirkgold]

DIt is onzin.
Er kan geld gecreerd worden met opties te schrijven op het goud.
Dan kunnen de centrale banken het natuurlijk wel verliezen.

[Paul]

http://armstrongeconomics.com/2013/10/0 ... -physical/

"If you eliminate the “paper” market, then you eliminate liquidity and in doing so, there is no place to buy or sell and that undermines the value of anything."


Dat zeg ik.

[Dirkgold]

mooi gezegd : ( nooit een free market geweest voor geld. ( buiten de laatste 10 jaar ? )

van hier : http://www.tfmetalsreport.com/comment/3 ... ent-355769

Let me state again that I think Armstrong's system is amazing and the man is a hero. However, facts are facts and his latest is shockingly just wrong again.

The price of gold is established by the market. Everything trades the same...The market is the market. ALL COMMODITIES trade the same way.The object here is to survive what is unfolding not to spout out some theory that does not stand up to the test of time and circumstance. Simply accept that ALL MARKETS rise and fall.

Gold-price history charts denominated in US dollars show a flat line at $35 that runs through most of the 20th century. Thirty-five dollars was, after all, the official gold price as set by the United States Treasury from 1934 on. Prior to 1934, the gold price had been fixed at $20.67 for almost a century, before President Franklin Roosevelt confiscated Americans' gold and revalued the price to $35 that year.

So wait..the gold price was not set by the market? For how long????

Now, I am supposed to believe in an era of unfettered socialism and central planning as Martin admits, that somehow gold trades "freely" when it sits on central bank balance sheets across the world? When we had the Washington Agreement in Europe that limited CB gold sales? When we have not had an audit of FT. Knox since Eisenhower? When the Bundesbank says they want their gold and the answer is it will take seven years?! When the FED via Greenspan freely admitted a decade ago that they stood ready to sell gold, when Brown did sell all his gold due to the "abyss."

I'd continue but good grief. No one is saying gold should go the moon or gold should go up every day. All anyone wants is a free and fair market and THAT IS NOT WHAT IS HAPPENING!!

Lastly, gold is not like other commodities. Backwardation in gold is serious, for one reason. As Obama stated the other day, US Debt is the foundation for global capital markets. Gold is the ultimate extinguisher of debt (Fekete) and while in backwardation it calls into question the foundation of which Obama spoke. So, no it is NOT like all other commodities, sorry.

en :



Gold is money. That's it.

Now stocks can be money, cash can be money, TBonds can be money, foreign currency can be money, and gasoline can be money too, and I have discussed this in my weekly blog articles.

Here is the crunch: bonds are usually "safe money" since they are safer than, say stocks, when times get bad.

But if and when bonds fail, gold becomes the new money, gold becomes the new bond, and it fulfills the purpose of bonds that bonds are failing to do properly. The bonds are carrying the water for gold the rest of the time and in doing so, suppressing gold by absorbing risk averse moneyflow and storing it. You could say the commodities absorb that money which might be in stocks, and gold absorbs that money which might be in bonds. Given the present size of the global bond markets that is an interesting subject for "another" day.

Now this week MA says that the market price for gold is THE price. But we all know that there can easily be two prices for anything. All you have to do is be a foreigner in a high inflation country and you will be offered higher than the official rate for your foreign cash which is a harder currency than THEIR cash. Or you can stand outside a stadium and watch the unofficial market for tickets in operation. No official price there either. Have you got a voucher in return at a store because they won't give you cash? Turn to the queue and sell it for a discount to their next customer right there and then. No problem.

So MA is wrong to make that particular statement. It's obvious. The real world proves it so. But it is always the official stance on the matter that the official state market price is the only price. I guess we all draw our own conclusions.

This post is about that particular statement, and not the man or his body of work.

[Indiana Jones]

http://armstrongeconomics.com/2013/10/0 ... -physical/

"If you eliminate the “paper” market, then you eliminate liquidity and in doing so, there is no place to buy or sell and that undermines the value of anything."


Dat zeg ik.

De goldcomex future markt ging pas van start, toen goudbezit in de VS werd vrijgegeven. Voordien was deze handel geconcentreerd op de LBMA waarop geen particulieren toegang hadden.
Om te zien wat er gebeurt als er geen futurehandel is, zie bijgaand overzicht. Je kunt er precies op zien, wanneer de Gold-Comex van start ging ....

[Paul]

mooi gezegd : ( nooit een free market geweest voor geld. ( buiten de laatste 10 jaar ? )

van hier : http://www.tfmetalsreport.com/comment/3 ... ent-355769

Let me state again that I think Armstrong's system is amazing and the man is a hero. However, facts are facts and his latest is shockingly just wrong again.

The price of gold is established by the market. Everything trades the same...The market is the market. ALL COMMODITIES trade the same way.The object here is to survive what is unfolding not to spout out some theory that does not stand up to the test of time and circumstance. Simply accept that ALL MARKETS rise and fall.

Gold-price history charts denominated in US dollars show a flat line at $35 that runs through most of the 20th century. Thirty-five dollars was, after all, the official gold price as set by the United States Treasury from 1934 on. Prior to 1934, the gold price had been fixed at $20.67 for almost a century, before President Franklin Roosevelt confiscated Americans' gold and revalued the price to $35 that year.

So wait..the gold price was not set by the market? For how long????

Now, I am supposed to believe in an era of unfettered socialism and central planning as Martin admits, that somehow gold trades "freely" when it sits on central bank balance sheets across the world? When we had the Washington Agreement in Europe that limited CB gold sales? When we have not had an audit of FT. Knox since Eisenhower? When the Bundesbank says they want their gold and the answer is it will take seven years?! When the FED via Greenspan freely admitted a decade ago that they stood ready to sell gold, when Brown did sell all his gold due to the "abyss."

I'd continue but good grief. No one is saying gold should go the moon or gold should go up every day. All anyone wants is a free and fair market and THAT IS NOT WHAT IS HAPPENING!!

Lastly, gold is not like other commodities. Backwardation in gold is serious, for one reason. As Obama stated the other day, US Debt is the foundation for global capital markets. Gold is the ultimate extinguisher of debt (Fekete) and while in backwardation it calls into question the foundation of which Obama spoke. So, no it is NOT like all other commodities, sorry.

en :



Gold is money. That's it.

Now stocks can be money, cash can be money, TBonds can be money, foreign currency can be money, and gasoline can be money too, and I have discussed this in my weekly blog articles.

Here is the crunch: bonds are usually "safe money" since they are safer than, say stocks, when times get bad.

But if and when bonds fail, gold becomes the new money, gold becomes the new bond, and it fulfills the purpose of bonds that bonds are failing to do properly. The bonds are carrying the water for gold the rest of the time and in doing so, suppressing gold by absorbing risk averse moneyflow and storing it. You could say the commodities absorb that money which might be in stocks, and gold absorbs that money which might be in bonds. Given the present size of the global bond markets that is an interesting subject for "another" day.

Now this week MA says that the market price for gold is THE price. But we all know that there can easily be two prices for anything. All you have to do is be a foreigner in a high inflation country and you will be offered higher than the official rate for your foreign cash which is a harder currency than THEIR cash. Or you can stand outside a stadium and watch the unofficial market for tickets in operation. No official price there either. Have you got a voucher in return at a store because they won't give you cash? Turn to the queue and sell it for a discount to their next customer right there and then. No problem.

So MA is wrong to make that particular statement. It's obvious. The real world proves it so. But it is always the official stance on the matter that the official state market price is the only price. I guess we all draw our own conclusions.

This post is about that particular statement, and not the man or his body of work.

wat zij gigantisch missen is het holistische perspectief.
veels te gefixeerd op de goudmarkt. en veels te binnenlands gericht.
het krachtenspel op het geheel waarin ook goud functioneert werkt EXACT zoals armstromg beschrijft

en niet wat die andere charlatans erbij verzinnen
deze mensen zitten allemaal goud structureel omhoog te praten en MA was de ENIGE die de correctie voorspelde zoals ie zich voltrekt. Daar hoor je die hoed niet over met zn wrong again.

[Dirkgold]

"en veels te binnenlands gericht."

dit zinnnetje gemist ? :

But we all know that there can easily be two prices for anything. All you have to do is be a foreigner in a high inflation country and you will be offered higher than the official rate for your foreign cash which is a harder currency than THEIR cash.

De kerel die dit schrijft is dacht ik een brit.