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“Goldman warns the next big crash is around the corner” “Gold warns about the end of QE in terms of effectiveness” “Goldman warns about the rise of China” It

“Goldman warns the next big crash is around the corner” “Gold warns about the end of QE in terms of effectiveness” “Goldman warns about the rise of China” It goes on and on. It’s all marketing, they have to say something. The dollar has no risk, the demand for dollars is massive.

refurb 6y ago
I've noticed this too. I wonder how much is ass covering? It would look really bad if Goldman never brought this up to their clients and it did happen.
- zoomablemind 6y ago
  Or the other way around... Goldman warns loudly, yet the same Goldman readily bets on the opposite.
coralreef 6y ago
The dollar has no risk, the demand for dollars is massive. As is the supply of dollars. To say it has no risk is absurd; the dollar is created out of thin air by trading its future value. https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
- codeslave5 6y ago
  Yes it is. But the Fed is not stupid. This whole dollar losing its status fear is similar to “the next big depression, worse than 1929” or “the next big earthquake to knock California into the ocean”. It’s just human nature to fear these events. The us economy is rock solid and is basically the only economy innovating at all. This doesn’t mean that wages aren’t stagnant or that wealth inequality isn’t a problem.
  - effie 6y ago
    > The us economy is rock solid and is basically the only economy innovating at all. It is powerful, but not apparently healthy and experienced quite some scary events in recent years so "rock solid" is a very weird characterization. The U.S. capitalist system is inherently instable, it undergoes periodic crashes and extraction schemes that make people lose their property or get collectively more indebted. This makes people angry and willing to consider radical changes - see violence and rising popularity of socialism in U.S. It is hard to predict when it happens, but the outlook is not good. For economic/political stability, E.U. looks much better.
  - coralreef 6y ago
    The Fed is run by human beings, whom have biases and flaws. The US economy is strong, however its fiscal discipline is not. Federal debt to GDP ratio is at an all time high, and will only go higher. Abstract this graph out at current trends: https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.org/series/GFDEGDQ188S Public debt growth is outpacing GDP growth, so its only a matter of time. Do we anticipate that politicians will suddenly become conservative and start paying down debt? Unlikely. The pressure to keep the economy going and win elections is too strong. The power to create money (or artifically low interest rates) is a heroin addiction, impossible to wean your economy off of. If you had to lock your wealth in over the next 10-25 years, you're not buying US government bonds. You're hiding out in gold, housing, and stocks. The dollar is not an asset you want to be part of.

refurb 6y ago

I've noticed this too. I wonder how much is ass covering? It would look really bad if Goldman never brought this up to their clients and it did happen.

zoomablemind 6y ago
Or the other way around... Goldman warns loudly, yet the same Goldman readily bets on the opposite.

coralreef 6y ago

The dollar has no risk, the demand for dollars is massive. As is the supply of dollars. To say it has no risk is absurd; the dollar is created out of thin air by trading its future value. https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2

codeslave5 6y ago
Yes it is. But the Fed is not stupid. This whole dollar losing its status fear is similar to “the next big depression, worse than 1929” or “the next big earthquake to knock California into the ocean”. It’s just human nature to fear these events. The us economy is rock solid and is basically the only economy innovating at all. This doesn’t mean that wages aren’t stagnant or that wealth inequality isn’t a problem.
- effie 6y ago
  > The us economy is rock solid and is basically the only economy innovating at all. It is powerful, but not apparently healthy and experienced quite some scary events in recent years so "rock solid" is a very weird characterization. The U.S. capitalist system is inherently instable, it undergoes periodic crashes and extraction schemes that make people lose their property or get collectively more indebted. This makes people angry and willing to consider radical changes - see violence and rising popularity of socialism in U.S. It is hard to predict when it happens, but the outlook is not good. For economic/political stability, E.U. looks much better.
- coralreef 6y ago
  The Fed is run by human beings, whom have biases and flaws. The US economy is strong, however its fiscal discipline is not. Federal debt to GDP ratio is at an all time high, and will only go higher. Abstract this graph out at current trends: https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.org/series/GFDEGDQ188S Public debt growth is outpacing GDP growth, so its only a matter of time. Do we anticipate that politicians will suddenly become conservative and start paying down debt? Unlikely. The pressure to keep the economy going and win elections is too strong. The power to create money (or artifically low interest rates) is a heroin addiction, impossible to wean your economy off of. If you had to lock your wealth in over the next 10-25 years, you're not buying US government bonds. You're hiding out in gold, housing, and stocks. The dollar is not an asset you want to be part of.