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Gold overtakes U.S. Treasuries as the largest foreign reserve asset

economictimes.indiatimes.com

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Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#41

Post by vincnetas »

dpb001 wrote: post #34
therobots927 wrote: post #19

Earlier quoted context omitted.

That’s interesting. Hadn’t thought of it that way. I can’t for the life of me figure out why more blue states aren’t taxing their wealthy occupants to cover the gap in lost federal funding from DOGE. If they were smart they would start stretching that muscle.

The union of states arrangement has the side effect of putting the states in competition with each other for things like new/expanding businesses and residents. It's relatively easy to relocate (or even remain in a state while legally "residing" elsewhere). So there are diminishing returns to raising the tax rates significantly on the upper brackets at the state level. I'm not a believer in the trickle down theory bu…

this somehow excludes such human concept as sense of belonging. might be in usa it has atrophied already but sense of home is really important in some places. place where you spend most of your life, where you have you real social network, neighbors and childhood friends. sometimes its lower tax is not worth loosing it all. its not everything about money (for some)

ps im talking about real persons here, not corporations

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#42

Post by rapind »

aloha2436 wrote: post #26

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

> someone too stupid to understand

That's only true if he's actually "your guy". There's an alternative where it's not stupidity that I think more people should be mulling over.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#43

Post by andsoitis »

consumer451 wrote: post #16
b3ing wrote: post #12

Earlier quoted context omitted.

They don’t care when the media on am and talk radio, evangelical and mega churches, and all the conservative news tells them what to believe

Media that is never critical towards one side is what started all of this. A politician's kryptonite is when their voters find out that they lied or were hypocrites. That is a universal truth. Single party media outlets like News Corp, Sinclair, Euronews, and so many others have broken that system entirely. My test to see if someone is a shill/moron is to simply ask them to say one obvious bad thing about "their side…

What’s the worst thing, in your mind, about “your side”, assuming you have one.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#45

Post by bijowo1676 »

andsoitis wrote: post #40
bijowo1676 wrote: post #29

Earlier quoted context omitted.

Gold has always been stable, because it is physically limited. It is the fiat currency debasement via unlimited money printing that makes the gold chart go up. Imagine being in Zimbabwe or Weimar Germany and watching your stock portfolio and gold going up...

> Gold has always been stable, because it is physically limited. Incorrect. Physical scarcity matters, but it’s not the main driver. Gold’s price is far more sensitive to interest rates, dollar strength, sentiment and fear, speculative flows. The stability it’s historically shown was mostly the result of fixed monetary systems, and those are long gone.

its because you are measuring stable Gold in volatile fiat which is being printed every day depending on the factors you mentioned (interest rates, expectations of future growth, sentiment etc).

because you are getting paycheck in fiat, you are psychologically programmed to think of fiat as something stable, and Gold as volatile.

while in reality prices expressed in Gold ounces remained fairly stable for example: https://i.redd.it/1b5mfrqkxxef1.jpeg

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#46

Post by consumer451 »

andsoitis wrote: post #43
consumer451 wrote: post #16

Earlier quoted context omitted.

Media that is never critical towards one side is what started all of this. A politician's kryptonite is when their voters find out that they lied or were hypocrites. That is a universal truth. Single party media outlets like News Corp, Sinclair, Euronews, and so many others have broken that system entirely. My test to see if someone is a shill/moron is to simply ask them to say one obvious bad thing about "their side…

What’s the worst thing, in your mind, about “your side”, assuming you have one.

I grew up in Seattle mostly, some of my policy positions could paint me as a progressive, and they are somewhat "my people."

It turns out that progressives are just as easily fooled as any other group, by a slick turn of phrase. For example, "Genocide Joe."

I once thought my group was more thoughtful. But, it turns out that ALL of us are easily programmed meat machines.

Voted for Obama, he totally messed up with Russia and Crimea.

I could go on, and on. I believe that the only -ism I can believe in is fallibilism.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#47

Post by onion2k »

refurb wrote: post #21
consumer451 wrote: post #6

The fact that this all happened by choice is really something. It's like witnessing a self-decapitation.

Not really. It has more to do with gold is now worth almost 3x what it was 2 years ago. And before you get too excited, this "news" from the World Gold Council. A consortium of gold mining corporations. Clearly it's a pump article "have you bought gold yet? everyone else is! why not you!?!?"

Not really. It has more to do with gold is now worth almost 3x what it was 2 years ago.

It's not like we've suddenly found new and exciting uses for gold though. The reason the price has gone up is because the demand for it has gone up, and the reason why demand has gone up is because people want an alternative to U.S bonds. A bunch of pump articles wouldn't be enough to lead to a 3x price increase.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#48

Post by ejoso »

rapind wrote: post #42
aloha2436 wrote: post #26

America was in practice running an empire that collected tribute from the rest of planet earth in exchange for entries in a database denominated in a currency they controlled and that was accepted everywhere. Really the only way it could go wrong is putting it under the control of someone who doesn't understand the kayfabe...

> someone too stupid to understand That's only true if he's actually "your guy". There's an alternative where it's not stupidity that I think more people should be mulling over.

Say more

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#49

Post by somenameforme »

consumer451 wrote: post #6

The fact that this all happened by choice is really something. It's like witnessing a self-decapitation.

You're seeing the result of something that's been decades in the making. You can see a simple table of dollar reserves here. [1] They've been consistently falling year over year for the past 27 years. And it's not like 1999 was anything particular. Rather the uptake leading up to 1999 as a peak was a result of shenanigans that happened in 1971 [2]. That's when the USD became completely unbacked by anything, enabling the government to start going arbitrarily far into debt. That had short to mid-term positive impacts and long-term catastrophic ones, as is the typical strategy in modern times.

People always exaggerate the impact of geopolitical things, because it feels like the biggest thing ever, especially when you're relatively young. But in reality we're always onto nonsense after nonsense. Countries have the wisdom and view to appreciate this, and so respond to geopolitical stuff (in action, not rhetoric) far more gradually than people do. They're certainly not going to just dump all their dollar reserves because of a single misguided war or even misguided president, or they'd have been gone long ago.

[1] - https://en.wikipedia.org/wiki/Reserve_currency#Global_curren...

[2] - https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_sho...

[2] - https://wtfhappenedin1971.com/

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