General DOOM thread

[TwoWolves]

Okay should have said between 01 and 2011/12 - 90% during this time. I'd argue the value of gold is been pushed down since 2011/12 at the same time the FANG stocks have been pushed up almost 1000% with printed dollars. Gold is heavily undervalued at the minute and will probably sink further in the short term. Did you ken there's nearly 10 times as much paper gold in the derivatives market than there is actually physical gold?

The hypothocation ratio is worse than that.

[scooterscot]

Price of gold in 2003 was around $325/oz, today it is $1226/oz, so a 73% drop in value, not as bad as 90%

Gold Price Chart, Live Spot Gold Rates, Gold Price Per Ounce/Gram | BullionVault

Okay should have said between 01 and 2011/12 - 90% during this time. I'd argue the value of gold is been pushed down since 2011/12 at the same time the FANG stocks have been pushed up almost 1000% with printed dollars. Gold is heavily undervalued at the minute and will probably sink further in the short term. Did you ken there's nearly 10 times as much paper gold in the derivatives market than there is actually physical gold?

[GJABS]

In the last 15 years the dollar has lost 90% of its value against gold - you call that trust when the printing presses are burning that fast and furious? I call it theft.

Price of gold in 2003 was around $325/oz, today it is $1226/oz, so a 73% drop in value, not as bad as 90%

Gold Price Chart, Live Spot Gold Rates, Gold Price Per Ounce/Gram | BullionVault

[TwoWolves]

EN currencies looking bad because of US debt they've taken on. I could not use trust and US finance in the same sentence. In the last 15 years the dollar has lost 90% of its value against gold - you call that trust when the printing presses are burning that fast and furious? I call it theft.

I didn't say it was moral, just observing. Most of that debt funded Asian growth, they are co-dependent.

[scooterscot]

EN currencies looking bad because of US debt they've taken on. I could not use trust and US finance in the same sentence. In the last 15 years the dollar has lost 90% of its value against gold - you call that trust when the printing presses are burning that fast and furious? I call it theft.

[TwoWolves]

It is common knowledge UK debt is over £2 trillion, not a scrap on US levels. The pound will be around long after the dollar. Everyone thinks I'm barking suggesting the dollar is going to collapse out of existence. Yet the signs are everywhere.

EM currencies look more vulnerable and Asian debt is eye-watering too. There's a lot more trust in US finance, just look at the capital outflows into the US if you don't believe me.

Just the least ugly in an ugly parade.

[scooterscot]

It is common knowledge UK debt is over £2 trillion, not a scrap on US levels. The pound will be around long after the dollar. Everyone thinks I'm barking suggesting the dollar is going to collapse out of existence. Yet the signs are everywhere.

[Cirrus]

The collapse will occur when it is generally realised the US has $70 trillion dollars worth of debt.

I don't know the answer but I'd take a punt on the UK being worse than the US. (Yesterday we were second worst to Portugal although I can't imagine how they could have been even more useless than us...)

[scooterscot]

Collapse won't happen until something like a big US bank collapses, Trump is impeached or a proper war starts somewhere.

The collapse will occur when it is generally realised the US has $70 trillion dollars worth of debt.

[TwoWolves]

Treasury spreads and (real) interest rates.

This baby goes down when the Sovereigns start crumbling, the Corporate debt will just grease the velocity.

[AtW]

Collapse won't happen until something like a big US bank collapses, Trump is impeached or a proper war starts somewhere.

How about all 3 happening at the same time?

[DimPrawn]

Collapse won't happen until something like a big US bank collapses, Trump is impeached or a proper war starts somewhere.

A few billion vanishing due to a debt or private investors losing money won't affect the global economy.

[scooterscot]

KUTITB

I've been saying this in my stock market crash thread for donkeys. The debt corporations are pilling upon themselves is bonkers. And rates will increase. Upon the moment consumers rain in their spending expect a wave of collapses. Then watch the housing market blow up like a fart in the wind.

Cheer up... new piece I'm practicing, Nuvole Bianche by the great Ludovico Einaudi, which is burning my remaining grey matter. But with a view of the sun setting over Austrian alps I really can't complain.

A picture I took the other night,

[AtW]

Over-leveraged companies face catastrophic spike in defaults, Moody's warns

Companies are piling on debt and making themselves vulnerable to the next economic downturn, Moody's has warned.

The credit ratings agency said that covenants on leveraged loans, which are designed to protect investors from firms defaulting, had weakened to their lowest level ever seen in Europe.

Covenants lay out limits on how much more debt a company can take on.

“A tight covenant structure is good for lenders. Because it inhibits the company from taking certain actions to the detriment of lenders. A loose covenant structure is generally credit negative,” said Peter Firth of Moody’s.

Over-leveraged companies face catastrophic spike in defaults, Moody's warns

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Get ready for the collapse!

HTH

Father