Comments on: Depression II… the Sequel

By: Jon Bain

Jon Bain — Tue, 17 Feb 2009 22:00:21 +0000

Zim and USA : the same mentality : Protectionism.
'WE want everything to be run and owned and by US'.
(And the foreigners head for the wide blue yonder)

You cannot fool the global market.
If you try, you get burnt twice as bad down the line.
China also has protectionist policies.
Their bubble will burst too.

The entire West is protected by rigged exchange rates.
The next two years are going to be 'interesting times'.

And at the end of it, there will be a big Gold bubble waiting to pop.

By: Diggin it!

Diggin it! — Tue, 17 Feb 2009 00:52:27 +0000

in my industry we saw 20 years capital growth in 10 years, this would suggest the asset prices would have to drop 50% or wages increase by 100%! neither will happen, but what it suggests is a 10 year recovery after we hit the bottom. Recession, when people have money and choose not to spend it! Depression when people have no money to spend!

By: Hugo

Hugo — Fri, 13 Feb 2009 23:12:15 +0000

You say that "After dipping a bit on Monday, gold for April delivery jumped $21.40..."

I suppose this is the price of futures contracts for Gold, which is affecting the price of gold in February. If so, where can I find out when these contracts are coming up for renegotiation?

By: Ross

Ross — Thu, 12 Feb 2009 22:00:39 +0000

And hey presto Mr Biti has foreign currency to pay the entire public service! For how long? And then the reckoning for the socialist/populist MDC.
Brit and US soft diplomacy hasn't ever lasted as long in country as their grunts. Notice the latest US real estate figfures? Any geo associated with supplying the grunts (like Texas and upstate NY) is holding up just fine losing less than 10% while the loss hot spots are all over 40% down. So why kill enough Zims with agricultural subsidies and capital constraint in order to get them to sell out their resources cheap (signing onto foreign investment in resource bondage) when you can supply stealth stimulus at home and Hillary can sell you the soap opera of a democratic party moral war on evil written up by her CFR buddies. Go the US military industrial complex, go the bond lunacy to pay for it!
And eventually Chinese and Indian capital will prevail, just like the Afghani's the Zim bushmen will eventually cut up the CFR alliance even if they have to do it with machetes.
Rome has fallen, but the accounting is lousy.

By: John

John — Thu, 12 Feb 2009 17:21:12 +0000

"One person's cost is another person's income"... yea... in China! But that's ok because the money would've been borrowed from China to begin with, so it's not really "income" for them, as they would never get it back anyway. They're better off with the lower income up front, and besides, their balance sheet looked pretty healthy last time I checked. All they have to do is let their currency adjust in value and dump the USD. Then they'll be able to drive their own demand (as if that takes a genius! OMG I don't know what to do with this extra TV! If I don't find somewhere to put it our economy is doomed!)

By: Bertie

Bertie — Thu, 12 Feb 2009 14:38:47 +0000

With Gideon freed up maybe he can come stateside to help out?