For those that think gold is a bubble.

Discussion in 'Economics' started by peilthetraveler, Jan 12, 2011.

  1. A 1927 Ford Model T, right off the lot, cost an average price of $400, or 20 ounces of gold at 1927 prices.

    A 2011 Ford Explorer, right off the lot, cost an average price of $28,000...or 20 ounces of gold at todays prices.

    Any questions?
  2. yes - is Ford in a bubble?
  3. Yeah, teach... What, pray tell, is your point?
  4. His point is rather clear or are you back into your intentionally obtuse routine again?
  5. the problem isn't gold....
    the only reason gold oil is up is the USD dilution....

    currencies can become worthless...and with FED goal inflation with quantitative easing.

    What deomcratic free marekt economy central banks wants a weak currency? and wants inflation.

    the FED is quasi gov't insittutions so it is free from gov't political interference from monetary policy..the FED has rules and it's broke.

    FED will suffer same fate as all entities who try to manipulate the free market---US or FED bankruptcy..muni gov't are already bankrupt...muni gov't can't ask the fed for money to pay for deficits...

    FED is acting too political.

    FED main job or purpose for existence is to protect the value of the US and lend money to banks.

    only reason the fed did quantitative easing was banks like citigroup was insolvent and you can't have a bank like citigroup become insolventthe FDIC woul be bankrupt. and saudi prince owns citigroup. shares.

    it's not the FED's problem if unemployment is 10% or stock market levels.

    it's the problem of the FED with inflation or USD loses value... or banks going bankrupt.

  6. Oh no, it's you, my belligerent friend... I missed you a bit, you know that?

    His point is totally unclear to me. What is he trying to tell me? Maybe you can explain? And yes, in answer to your question, I am being intentionally obtuse. I find that it's an approach that helps certain of my opponents here focus better and formulate their thoughts more clearly. Present company excluded, naturally.
  7. To build a Model-T today would cost about $800, or 0.5 oz of gold.

    According to the original poster's logic, then, gold is about 40x overvalued.

    I assume that was the point he was trying to make...
  8. Sorry...I guess I give too much credit to people on this forum. I thought what I wrote was simple enough for a 5th grader to understand. But since what i said was "totally unclear" to you, I will just flat out say it.

    Gold is not a bubble.

    I really didnt think it was that hard to figure out that's what I was trying to say.
  9. That weekly parabollic chart on my screen must be an illusion, or perhaps this time (dare I even say it)... it's different!
  10. Yes yes, let's agree that you're smart and I am stupid, so that we can get on with it...

    In terms of your actual point, you'll get no disagreement from me, simply because I have no idea what your definition of "a bubble" is.
    #10     Jan 13, 2011