Comments on: Is it 1932 – or 1923?

By: Here’s Why Government Bonds Are No Longer A Safe Investment

Here’s Why Government Bonds Are No Longer A Safe Investment — Thu, 28 May 2009 14:16:02 +0000

[...] Economists will tell you that governments can’t default on bonds in their own currency, because they can always print more money. In extreme cases, printing more money will lead to high inflation or even hyperinflation, leading to an effective repudiation like that perpetrated on my great aunt, or even like that carried out by the German Weimar Republic in 1923, when German prices were measured in the trillions of marks. [...]

By: Gold Price High Again

Gold Price High Again — Mon, 25 May 2009 03:32:14 +0000

[...] Comparing today’s US, Swiss, Japanese and UK ‘money printing’ with the hyper-inflation of 1920s Germany, the Bank of England was already set to buy “£300 billion per annum, 65% of British government spending,” as Martin Hutchinson has noted at Money Morning. [...]

By: As Economic Growth and Inflation Escalate, U.S. Treasury Bond Yields Will Head Higher

Thu, 07 May 2009 10:01:27 +0000

[...] The German Weimar Republic, during the years leading the 1 trillion percent inflation in 1923, monetized 50% of government expenditure. The Fed, through its program of buying $300 billion of T-bonds in six months, is currently monetizing about 15% of federal expenditures, not as high as Weimar, but enough to nonetheless bring about a severe danger of inflation. [...]

By: Busy Man Fitness

Busy Man Fitness — Mon, 27 Apr 2009 16:50:56 +0000

This single sentence hit me hard:

“On the other hand, the Weimar hyperinflation wiped out the entire savings of the German middle class.”

Reminds me of the current times.

By: Simon Peter

Simon Peter — Fri, 24 Apr 2009 10:40:18 +0000

Thank you for referring to Martin Hutchinson’s article. I am encouraged about your statement that dividends, especially high-yielding, and gold should be THE portfolio.

I have invested twice over the past two years in a new PLC which I consider is going to be a high-yielding earner in dividends. It is called Primary Water PLC and possesses specialised knowledge of where to drill boreholes at any place on the surface of the earth, including the USA, for non-saline water.

Since there is such a lack of fresh water, and since human beings will pay for it for drinking, sanitation and, of course, food production, it seems to me that shares in Primary Water PLC are going to be very productive.

Oil companies have got big from drilling boreholes for what has been trapped below ground since time immemorial and which has never seen the light of day.

So, also, is this company doing the same for water which has never, ever been part of the hydrological cycle, never seen a cloud in its life.

They have a website which is http://www.primarywater.com.au/

I wonder what Money Morning would make of this company?

By: Why Dividends and Gold Are the Keys to Permanent Wealth

Why Dividends and Gold Are the Keys to Permanent Wealth — Wed, 22 Apr 2009 11:25:54 +0000

[...] is being used to finance 15% of the $2 trillion in government spending during those six months. Germany’s Weimar Republic used printing money to finance 50% of government spending in 1919-1923, and ended up with 1 [...]

By: Simon Peter

Simon Peter — Sun, 19 Apr 2009 18:47:18 +0000

Gold and silver prices are nicely falling at the moment. Watching this price fall daily +, ought to help sense when to buy once more to ride the rise upwards.

Since mines sell their gold into the market at no lower than $700-800 because production costs prohibit a lower price, I figure that the market won’t fall lower than this.

At that price, gold mines stop selling into the market whilst gold users, such as jewellers and electronics, continue buying, however, little. A rise is seen and then, hopefully, hedge funds and others start to buy again.

You just need internet access to gold and silver spot prices. If you use GoldMoney, I find that if you click on GoldMoney, the spot price is refreshed.

Is it really as easy as this? What am I missing?

By: Is it 1932 – or 1923?

Is it 1932 – or 1923? — Thu, 16 Apr 2009 15:11:17 +0000

[...] By Martin Hutchinson Editor, Permanent Wealth Investor Money Morning, Investment News [...]

By: Is This the Beginning of a Bull Market, or Just a Breather for the Bear?

Is This the Beginning of a Bull Market, or Just a Breather for the Bear? — Thu, 16 Apr 2009 14:25:56 +0000

[...] Money Morning: Is it 1932 – or 1923? [...]

By: Doug

Doug — Wed, 15 Apr 2009 00:38:25 +0000

It’s because these guys know nothing other than pushing paper debt liabilities. I heard one commentator remark that
to buy physical gold one would then have to go to the expense of hiring an armored truck company to transport it
and then pay exorbitant vault storage fees. Give me a break,
you could certainly find a safe place to hide something so small on your own property, a million dollars of gold can all fit
into a 5 1/2″ cube.