Bill Bonner on Spending vs. Saving

[haha]

http://www.lewrockwell.com/bonner/bonner185.html

It seems that this topic, in various guises has been on our minds a lot lately. Bill Bonner is a gifted writer- I hope you enjoy his take.

Ha

 

[Martha]

Interesting article. Greg just read the Empire of Debt and has a friend reading it now.

 

[P.S.]

Ha-

Thanks for the link. Look forward to reading his other articles.

 

[Nords]

Last night, we spent the night at our country house alone.

That's hard for plural subjects to do solo!  Apparently "we" is (are?) either one of those literary snobs who can only communicate in the third person... or else he's schizoid.

So far I can't tell which, or both.  And it's not exactly doing wonders for his (their?) credibility.

But who am I to impugn a guy whose gold shares a good laugh with him.

 

[flipstress]

Yeah, I didn't get that he was using the editorial "we".  I was puzzled when he said something like we have a pretty wife.

Still, I liked his writing, even if his use of the editorial "we" seems quaint and old-fashioned, like articles from the 19th century.

 

[haha]

Agree that "we" is a bit weird- but goldbugs and their ilk are weird. I think he is tuned to them.

Nevertheless, he has something that many financial writers lack- a sense of the tragi-comic nature of human existence.

He is also very wealthy. He's the guy behind Agora Publishing, a behemoth in the "Things are going to hell fast" space.

Ha

 

[Gone4Good]

Yawn.

Notwithstanding a frothy, speculative, run as of late, the price of gold is still lower than it was in the late 70's, which translates into better price stability then you'd figure by looking at the CPI index.

Yawn.

 

[haha]

Yawn. 

Notwithstanding a frothy, speculative, run as of late...

Yawn.

Hey, you need some more adjectives.

Ha

 

[Gone4Good]

Hey, you need some more adjectives.

Ha

Sorry, but my Thesaurus is on loan.

But it does strike me as odd that even as gold is soaring to new heights the "real-return" on 5-year TIPS has expanded 80bp or so. If gold is going up because of inflation fears, why are inflation protected bonds not also being bid up?? And why is the long treasury rate going down? Could it be because something else is driving commodity markets?

 

[haha]

But it does strike me as odd that even as gold is soaring to new heights the "real-return" on 5-year TIPS has expanded 80bp or so.  If gold is going up because of inflation fears, why are inflation protected bonds not also being bid up??  And why is the long treasury rate going down?  Could it be because something else is driving commodity markets? 

No idea. Long ago I figured out that trying to make sense of speculative markets is a high cost low return activity. I agree with you that gold is pretty expensive, given other indicators of inflation or the lack thereof in the economy. But is it too expensive? Is GOOG too expensive?

I don’t understand it- I just speculate (modestly) in it.

Ha

 

[Ol_Rancher]

Sorry, but my Thesaurus is on loan.

But it does strike me as odd that even as gold is soaring to new heights the "real-return" on 5-year TIPS has expanded 80bp or so.  If gold is going up because of inflation fears, why are inflation protected bonds not also being bid up??  And why is the long treasury rate going down?  Could it be because something else is driving commodity markets? 

One factor driving the price of gold lately is the useage of gold in India by the emerging middle class (outsourced jobs) for marriage doweries. Part of the bet one makes buying gold is that such usage will continue without interruption or that Middle Eastern hoarders will not begin selling.

Likewise buying diamonds is a bet on the ability of DeBeers to maintain its virtual market monopoly.

In either case the commodity has dubious intrinsic value.

 

[Martha]

Ha, honey, what happened to Calvin? I see you have been caught up in being a "peckerwood" lately.

 

[unclemick]

Hmmmm

As an old PacNW liberal Dem. - PUD, co-op type - I've been caught reading the 'Daily Reckoning' and Bonner from time to time.

Then again - as a kid - I had a great rock collection. Minerals and timberland have a warm fuzzy soft spot in my heart.

Still pretty much a Boglehead in ER though.

Must be a born out West thing. Liked John Wayne - not his politic's - She Worn a Yellow Ribbon still brings a tear to my eye but Casablanca is still the best.

Gold, Silver, Platinium, Timberland, and 10% of a non working gold mine in CO - are sentimental things - I will probably croak owning some or similar things.

Real money rides with De Gaul and the Norwegian widow - 12 years and counting.

heh heh heh heh

 

[cute fuzzy bunny]

I see you have been caught up in being a "peckerwood" lately.

Lately?

 

[bow-tie]

.... I was waiting for someone to comment on Ha's pecker of wood...

 

[HFWR]

hahahahaha!!!

 

[haha]

Ha, honey.... 

Martha Dear, call me honey and you have a friend for life. Revisiting my roots I guess. I was a city kid. Once I spent almost the whole summer with my country cousins. Before I went home they paid me what was in their eyes a large compliment-"Mikey, you're a peckerwood just like us." At that time it had no real meaning other than a typical just-scraping-by redneck that enjoyed driving cars with suicide knobs and animal tails hanging from the mirrors; dynamiting fish and other innocent country pastimes. 

Nevertheless, silent Cal is my still my main man, and I will likely return to him in due course.

By the way, I have been wanting to tell you how much I enjoyed your posts during your trip. They were very sweet and poetic. Your  "Sunrise Approaching Fargo" is a professional quality picture, and it captures the joy and longing of returning to one's home. I saved it. Thanks for sharing.

Ha

 

[cute fuzzy bunny]

Wonder if woody woodpecker ever has to go the emergency room to remove splinters from his hands?

 

[Milton]

Yawn.

Notwithstanding a frothy, speculative, run as of late, the price of gold is still lower than it was in the late 70's, which translates into better price stability then you'd figure by looking at the CPI index.

Yawn.

Perhaps you yawned too soon.

Bonner is certainly far from infallible, but there's a lot of sense in his writing. Every thinking American should read Empire of Debt.

 

[REWahoo]

Milton, any reason you decided to respond to a post more than two years old? Not trying to give you a hard time, just wondering why.

 

[lazygood4nothinbum]

recycling

 

[Milton]

The Thread that Came Back from the Dead?

I think it is amusing how many people dismissed Bonner's book (typically with rude non-arguments of the "blah blah blah" variety) when it was published in 2006. Of course, even a stopped clock is right twice a day ... but it is difficult not to look back now and suggest that he was rather prescient.

 

[packrat44]

Just woke from a deep sleep?

 

[Milton]

Related article: Bye-bye our carefree times