[dealdoctor] cruiser What is your take on the Iraq/Iran/Syria stuff going on now and its effect on our RV?
[cruiser] dealdoctor With the new Basel III system being implimented, You will be going from a 3 tier capital system to a 2 tier capital system. Tier 1 currently consits of 2 assets . Government Bonds ( Rating of debt is important here) and Gold, as of June 21,2012. They are the major one. Others will be added in the future.
Now under the old system , in ground assets, such as gold mines( not producing) or oild fields (not producing) are currently a tier 3. This means you will only get .$10 or $.05 on the dollar. How do you start to make it producing? You really cannot. Now with the same examlple as above and is moved into a tier 2, you will probably get $.35-$.40. This will give those owners and chance to start producing and making these gold mines producing tier1 assets.
[dealdoctor] cruiser great explaination!!
[blessedandhighlyfavored] cruiser Isn't today for the announcement from Bernake?
[cruiser] blessedandhighlyfavored no. Wo said that? will not hear from them until next week at the earliest.
Read More Link on Right
[geterdone] cruiser If QE3 has been done through the banks, when/how will the system be able to go down if they just keep propping it up?
[geterdone] Or maybe I just do not understand what they are wanting to do.
[cruiser] geterdone how did the banks do QE3? All they did was purchase bonds, that they are required to purchase to become Basell III compliant. Would the banks did do, was to stop the FED from having to come out and make it a formality or announce it, thus keeping the political parties out of it. Letting hope and speculation fuel this market rally. Just like the ECB did.
[stoner2] Cruiser. Any thoughts on debt forgiveness? We did borrow fiat money. Will we have to pay it back with asset based money?
[cruiser] stoner2 We borrowed a dollar and a dollar is a dollar. No matter who prints it.
[oucrazy] cruiser . . . you a pretty smart cookie!!
[stoner2] cruiser thanks. I had heard about debt forgiveness but wasn't sure who it pertained to.
[cruiser] stoner2 will probably be between countries. We may see something, but not banking on that. Just give us the RV. already and there would be our debt forgiveness. lol
[dealdoctor] cruiser Someone on Recaps forget who speculated that the government COULD say one new UST would be worth 2 old FRN because they had assets to back them. Any remote potential for this?
[cruiser] oucrazy lol in my mind I am.
[stoner2] Probably not us lol
[DinarAddict] stoner2 you got to be dreaming to think our govt or banks are going to forgive a penny
[Maryrose] dealdoctor cut everyone's worth in half?
[dealdoctor] Maryrose Yea but I think the guy was crazy for that very reason
[Maryrose] dealdoctor some people will say ANYTHING!
[stoner2] DinarAddict just wishful thinking. RV & I won't be in debt lol
[oucrazy] cruiser . . .a little confused. Will the new notes run concurrently with the old notes for a period of time till the old ones are washed out of the system?
[cruiser] oucrazy Yes. this will be no different from years ago when we switched over from UST notes to FRD.
[BigB] oucrazy One can get a better education here than anywhere. After all, there is no intel anymore, everything is done - so we wait and analyze the market and learn what is actually happening that controls the release of the the long awaited RV.
[oucrazy] BigB . . . realizing that more and more every day. Have learned a ton from cruiser.
[dealdoctor] Jobless claims are up and housing purchases are very slightly. NO question fewer people are finding jobs here now and very few finding good jobs. I think investors may be putting some money out of stocks into buying investor homes. They must be planning to hold them long term.
[geterdone] cruiser I thought we wanted the old system to crash so the new system could be implemented? Is it true that many banks will not withstand the change? Geezzz, I wish I understood what was happening.
[dealdoctor] geterdone me too!
[geterdone] dealdoctor one minute I think I understand then wammmm..........
stoner2] Geterdone. I understand it's RV'd. Can't wait to hear those words lol
[geterdone] stoner2 Me too.
[xyz] Schaeuble: More time for Greece no solution German finance minister Wolfgang Schaeuble warned more time for Greece could also mean 'more money', saying the eurozone had reached the limits of what is economically viable in its Greek aid package.
[dealdoctor] xyz Greece is a GONER!!
[BigB] dealdoctor Take it from an unemployed - after so long, one has to take any job that will pay anything. A lot of us are taking jobs at $20-$40 an hour below what we were and should be making - but we have to eat. It moves us off the unemployed numbers!
[cruiser] geterdone There are many different things being talked about. That is a situation that we will have to wait and see.
[xyz] Debt crisis: 'Arduous' path out of crisis, says Merkel Angela Merkel has warned that Europe is in one of its deepest crises, but added that while the path to a solution is inevitably “long and arduous,” the eurozone and the European Union will emerge stronger once it has been overcome.
[oucrazy] It's always been a conundrum to me that countries like Greece, for example, that has no visible means of support, save a few olives here and there. . . . how do they remain a viable country in the market place?
[dealdoctor] oucrazy tourism is one thing
[oucrazy] dealdoctor . . . oh, yeah, I did forget their only other asset. Lol
[dealdoctor] oucrazy I live in a place where tourism is a big deal. AS money becomes tighter people travel less..SO...Greece is in the crapper in many ways. Their deep social benefits program is possible only in rich nations and now people are going to bicycles ...hard to bike to Greece
[dealdoctor] BigB Yes..go look at the videos at
and you will understand WHY this is happening. The banking system is just ONE factor. The other two are energy future and the envionmental depletion of resources worldwide.
[dealdoctor] Later guys...going for my walk and then a business day...the world in the next twenty years will be far different from the world the last twenty. Today we all live much better than King David. These are the days of KINGs...apprecaite it. We have lived in the very best of times in the history of the world!
[dealdoctor] When it RVs we will be KINGs but many many will NOT...remember to give to others as you would wish to be given to when this RV happens and it Will HAPPEN!!