tag:blogger.com,1999:blog-7982981413278241287.post6485337946315283629..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: How Long Before the Demand for Physical Gold Blows Through the Paper Supply?Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7982981413278241287.post-58649942848572422062010-01-26T17:06:15.215-07:002010-01-26T17:06:15.215-07:00i live in canada and we are in a glass ball...simi...i live in canada and we are in a glass ball...similar to the US a few years ago just before real estate started to crash and then the stock market.<br />the wealth affect is in full force in canada because of real estate prices.<br /><br />Are Canadians rubes?<br /><br />When it comes to figuring out what to spend our money on, apparently. Let’s do a little comparison with our American neighbours – you know, those subprimates we’re always dissing as being trailer park while we’re so smart.<br /><br />US family income, on average, is $67,348. Canadian family income (in US dollars) is $68,305. Almost a dead heat there.<br /><br />Household debt as a percentage of disposable income is 132% in America and 145% here. Whoops, we lose that one, but not by much. We’re all spending beyond our means.<br /><br />Retirement savings in the US, as measured by the average 401k plan, is $62,900. In Canada, the average RRSP balance seems to be about $64,000, or $60,800 in US dollars – about the same.<br /><br />Mortgage rates are, hmmm, similar. In the States a short-term home loan is 3.7%, while here is it 2.65%. But the Americans have the edge in being able to lock in a 30-year mortgage at 5.14%, while we have to renew at market rates every 5 or 7 years.<br /><br />But what’s a very similar comparison breaks down entirely when it gets to real estate. The average US resale home costs $178,000. In Canada, the national average right now is $337,410, or in US dollars $300,294.Mikehttps://www.blogger.com/profile/17801046198211810990noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-26738342936682625722010-01-26T13:03:05.249-07:002010-01-26T13:03:05.249-07:00Speaking of CB "diversification" program...Speaking of CB "diversification" programs, Russia and China have said this past few weeks they are buying the CAD dollar and other Canadian assets and the said currency falls... Go figure!anliunoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-91882082483495566102010-01-26T12:32:10.803-07:002010-01-26T12:32:10.803-07:00The world already is starting to reject the dollar...The world already is starting to reject the dollar. Look at how many big central banks have announced reserve "diversification" programs.<br /><br />The Fed can't just "erase" electronic dollars because most of those dollars have an accounting offset which is some form of debt-created note. If the whole world is willing to give the U.S. a "do over" and just forgive all that debt, for sure the Fed can destroy the related dollars. But what are the odds of that happening?<br /><br />The more likely scenario is that the ongoing devaluation of the dollar (lost 80% since 1971 and you can find that number on the Fed website somewhere) will start to accelerate until we get to the point of an overt devaluation. Things will be really ugly at that point.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-90264549218854505732010-01-26T12:04:45.340-07:002010-01-26T12:04:45.340-07:00Dave can't this usd ponzi scheme go on as long...Dave can't this usd ponzi scheme go on as long as the central banks of the world play along? I mean whats stopping the fed from pressing the delete button on the digi dollars that come home to roost? U sort of see what I mean??Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-2347967081108771372010-01-26T11:38:22.144-07:002010-01-26T11:38:22.144-07:00anliu, i think a lot of it is largely black box/al...anliu, i think a lot of it is largely black box/algorithmic trading fueled by central bank intervention. I also think there are lot of mainstream dopes who believe that the U.S. is relatively more stable than EU/Japan. <br /><br />For sure, the U.S. is in much worse fiscal shape when you consider public and private debt in aggregate PLUS the expected amount of deficit spending going forward.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-43763341114538500062010-01-26T09:48:09.505-07:002010-01-26T09:48:09.505-07:00Dave how in God's good name can the usd rally,...Dave how in God's good name can the usd rally, and people sell gold when I keep reading headlines like these, [Defecit to hit 1.35T in 2010 CBO says, Growth to stay muted...] from Marketwatch today.anliunoreply@blogger.com