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It’s college week on Wheel and one of the contestants goes to Howard and is a Jazz Studies major.
I wonder what other interesting majors there are out there in college these days. Obviously I never learned anything about Finance at Kellogg as stevie points out that it was a marketing school.
Yes, Pete, agree. It would be interesting to read through the earliest history of gold and how the attachment developed. I don’t even know where it was supposedly first discovered.
I’m engrossed in Wheel of Fortune right now and have no time for such worldly possessions at the moment.
2 things I don’t understand is throughout history this obsession with gold and diamonds. Ugly, gaudy, needless stuff. Wouldn’t be caught dead wearing it.(except for some industrial uses which hardly justifies the price)….
Yes, denton. Even one of my colleagues who runs his own fund and has been a gold bull for decades thinks that it’s due for a selloff.
The catalysts for moves in gold are very difficult to understand at times. If it were that people felt that the US$ was going to be worthless, how come the Treasury auctions are going off so well at such low rates???
Looks like these gold bugs are setting themselves up for a crash like happened in 1983/84 when gold dropped from $800 to $300 in no time. Similar circumstances in some ways, coming off major economic recession, but different too, coming off major inflation.
Gold bugs are always the same but like the stopped clock they get it right every coupla decades.
I own IAU which holds physical gold and have done well with it but I hold it mainly as a hedge.
dibs, you used to be able to buy DeBeers but looks like they privatized. I guess you could track down some miners or maybe retailers like Zayles (?)
Or get married and buy him a big rock, lol. That’s what you call holding the physical.
I’m out. Ny-tol. Perhaps I’ll stop by later. And perhaps I’ll remember to turn the lights out tonight, Sister Snappy. (BTW, you’ll have to find a new way to discipline me. Today, I swiped all the rulers!)
Right, our GDP is currently around 12 trill while our total treasury debt is $10 trill. Meanwhile, our deficits are running at $1.5 trill to $2 trill a year and all of that needs to be borrowed. We will need to borrow more every year to pay the interest on our existing debt and fund our deficits. Extrapolate this scenario out 20 years. Our deficits could be at $75 trill to $100 tril. Even if interest rates stay at a low 3-4%, our cost of debt servicing becomes 30-40% of GDP. It is not hard to see how this could end badly. Furthermore, interests are likely to rise so it will become mroe expensive to roll our debt. We are not even including the unfunded liabilities from medicare and social security.
It’s college week on Wheel and one of the contestants goes to Howard and is a Jazz Studies major.
I wonder what other interesting majors there are out there in college these days. Obviously I never learned anything about Finance at Kellogg as stevie points out that it was a marketing school.
Yes, Pete, agree. It would be interesting to read through the earliest history of gold and how the attachment developed. I don’t even know where it was supposedly first discovered.
I’m engrossed in Wheel of Fortune right now and have no time for such worldly possessions at the moment.
2 things I don’t understand is throughout history this obsession with gold and diamonds. Ugly, gaudy, needless stuff. Wouldn’t be caught dead wearing it.(except for some industrial uses which hardly justifies the price)….
Yes, denton. Even one of my colleagues who runs his own fund and has been a gold bull for decades thinks that it’s due for a selloff.
The catalysts for moves in gold are very difficult to understand at times. If it were that people felt that the US$ was going to be worthless, how come the Treasury auctions are going off so well at such low rates???
good work stevie. I’m glad you’ve taken an obsessive interest in me. Have you any life at all????
Those that can’t, write or teach, as we say in the business.
Have you ever published anything????
Looks like these gold bugs are setting themselves up for a crash like happened in 1983/84 when gold dropped from $800 to $300 in no time. Similar circumstances in some ways, coming off major economic recession, but different too, coming off major inflation.
Gold bugs are always the same but like the stopped clock they get it right every coupla decades.
I own IAU which holds physical gold and have done well with it but I hold it mainly as a hedge.
dibs, you used to be able to buy DeBeers but looks like they privatized. I guess you could track down some miners or maybe retailers like Zayles (?)
Or get married and buy him a big rock, lol. That’s what you call holding the physical.
I’m out. Ny-tol. Perhaps I’ll stop by later. And perhaps I’ll remember to turn the lights out tonight, Sister Snappy. (BTW, you’ll have to find a new way to discipline me. Today, I swiped all the rulers!)
>>The cost of the US debt service is <2% of GDP.
Right, our GDP is currently around 12 trill while our total treasury debt is $10 trill. Meanwhile, our deficits are running at $1.5 trill to $2 trill a year and all of that needs to be borrowed. We will need to borrow more every year to pay the interest on our existing debt and fund our deficits. Extrapolate this scenario out 20 years. Our deficits could be at $75 trill to $100 tril. Even if interest rates stay at a low 3-4%, our cost of debt servicing becomes 30-40% of GDP. It is not hard to see how this could end badly. Furthermore, interests are likely to rise so it will become mroe expensive to roll our debt. We are not even including the unfunded liabilities from medicare and social security.
urgh…my foot is throbbing. time for a tootsie soak. nite everyone!
(and cargar, don’t think you won’t get your knuckles cracked again if you leaves the lights on!)