Possibly a dumb question

[Walsingham]

If we all owe money in our national budgets then WHO THE FETH DO WE OWE IT TO?

[Enoch]

Private citizens and companies. Ever buy a savings bond? The government owes you money.

 

Also, in the case of reserve currencies like the Dollar (and, to a lesser extent, the Euro and Pound), even the indebted countries hold what reserves they have in the form of US/Euro/British debt.

[Meshugger]

Those who,

 

1) Bought government bonds, which can be private persons, private or national banks or other governments in other countries.

 

If all goverments owe money to each other, there should be some balance. Basically, A owes x to B, while B owes y to A.

Edited March 8, 2010 by Meshugger

[Guard Dog]

Hence the reason why I said earlier I would not by US bonds right now is they took dried dog poop as payment. I have a feeling Obama plan to get out of debt is to cause the currency to crash. Unfortnuately he is not a student of history. That plan did not work out real well for the Weimar Republic.

[Killian Kalthorne]

Why not go back to a cashless society. If you wanted something, you take it. If you don't want someone to take your stuff, you protect it. Money issues would go away just like that!

 

WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!

[lord of flies]

If we all owe money in our national budgets then WHO THE FETH DO WE OWE IT TO?

The ghost of Vladmir Lenin. And he's coming to collect.

[Killian Kalthorne]

Ah, Lenin. Shot in the back. Very sad.

[Guard Dog]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

For me about 40% of my portfolio is tied up in gold and silver. 20% is in a few carefully chosen small cap stocks (sort of like gambling money), about 30% is split up over a few mutuals and 10% is in CDs. I got out of the NYSE all together so far as as owning individual securities. Ditto for buying currencies, too doggone unstable right now. I think I'm pretty well positioned/diversified. My 401k is mainly large cap stocks and it has just been devastated over the past two years. This year I think I'm getting rid of all the mutuals and CDs and start buying real estate. I think it's finally found the bottom.

 

 

Believe it of not my best single stock is a hamburger chain.

Edited March 8, 2010 by Guard Dog

[lord of flies]

Ah, Lenin. Shot in the back. Very sad.

Actually, he was shot in the front.

[Killian Kalthorne]

Oh, well. I always enjoyed his music, though Ringo was a very bad drummer.

[Wrath of Dagon]

To China of course.

[Enoch]

Hence the reason why I said earlier I would not by US bonds right now is they took dried dog poop as payment. I have a feeling Obama plan to get out of debt is to cause the currency to crash. Unfortnuately he is not a student of history. That plan did not work out real well for the Weimar Republic.

The difference being that the Deutchmark was not the primary reserve currency for pretty much the entire world. International markets back then could sell their DMs and buy Pounds or Francs or Lira or Dollars or whatever. People (and central banks) holding Dollars today don't have those same options-- the Eurozone has countries at the brink of default; the Brits and Japanese are in a similarly tight fiscal situation; etc. That's essentially the U.S.'s trump card-- even if inflation starts to hit hard, it's going to be at least as bad in the other major world economies, and currency/debt holders are still going to consider the Dollar the safest place to be. The big flaw in the mercantilist game that China has been playing is the fiat currency controlled by the country that is the primary market for their goods.

 

Nothing is certain, but the most likely outcome I see is a world economy in 20 years where the dollar is worth 30 cents, and everything else is worth 15 cents. It has little to do with any one politician or party's policies-- all the increased scrutiny of the Fed is going to lead to it quietly shifting its priorities away from supporting the financial industry and the international economy, and more into focusing on the national interests of the United States. Inflation essentially shifts the burden of existing debt away from debtors and onto anyone who holds a positive balance of that currency. And when the US has a large debt denominated in Dollars, with a substantial portion of the holders of Dollars (and the holders of that US debt) abroad, gradual-but-consistent inflation presents an opportunity to let foreigners absorb a decent hunk of the cost of that debt. I also suspect a round of de-liberalization of international trade over the next decade, which I think will hurt other nations more than it does the US. (Indeed, it would be a spur to reducting the % of the economy derived from consumer spending, which, long-term, is a healthier place to be.)

 

 

As for where I put my money; I've got funds in one of the more conservative lifecycle funds of the Federal Thrift Savings Plan (essentially a 401K for feds). The rest goes towards my and the wife's student loan debt. I'm not very good at trusting strangers to play with my money, so unless I've done enough research on a company that I don't consider them strangers, I prefer to stay away.

[I want teh kotor 3]

Ah, Lenin. Shot in the back. Very sad.

I was going to post "not remotely sad" until I saw the joke, at which point I lol'd.

[Walsingham]

As usual Enoch astounds. I actually understood that.

 

 

I think.

[Meshugger]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

For me about 40% of my portfolio is tied up in gold and silver. 20% is in a few carefully chosen small cap stocks (sort of like gambling money), about 30% is split up over a few mutuals and 10% is in CDs. I got out of the NYSE all together so far as as owning individual securities. Ditto for buying currencies, too doggone unstable right now. I think I'm pretty well positioned/diversified. My 401k is mainly large cap stocks and it has just been devastated over the past two years. This year I think I'm getting rid of all the mutuals and CDs and start buying real estate. I think it's finally found the bottom.

 

 

Believe it of not my best single stock is a hamburger chain.

 

My portfoolio is very risk-minimized. Agriculture, non-investment banks and alike . Through 11 years time, it has grown by 500%! (my original deposit was not that high )

 

I have been following the rise of the Gold lately, quite interesting. Why a steady rise the last 18 months?

[Hurlshort]

I think Killian is blossoming as a comedic talent.

[Guard Dog]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

For me about 40% of my portfolio is tied up in gold and silver. 20% is in a few carefully chosen small cap stocks (sort of like gambling money), about 30% is split up over a few mutuals and 10% is in CDs. I got out of the NYSE all together so far as as owning individual securities. Ditto for buying currencies, too doggone unstable right now. I think I'm pretty well positioned/diversified. My 401k is mainly large cap stocks and it has just been devastated over the past two years. This year I think I'm getting rid of all the mutuals and CDs and start buying real estate. I think it's finally found the bottom.

 

 

Believe it of not my best single stock is a hamburger chain.

 

My portfoolio is very risk-minimized. Agriculture, non-investment banks and alike . Through 11 years time, it has grown by 500%! (my original deposit was not that high )

 

I have been following the rise of the Gold lately, quite interesting. Why a steady rise the last 18 months?

 

Mainly due to fear over the dollar and the US economy in general. Not just the dollar actually, many countries are dealing with devaluation of currency which compels investors to seek "real" assets. I've been wondering if it has hit the ceiling. I was thinking of divesting some of it actually. I started buying Canadian Maple Leafs in 2007 and have bought as many as I could afford every year. But the price has fallen off 11% in the last few weeks so I stopped in January. I've been watching it drop slowly but steadily and I think we might be at the ceiling. I started buying at $720 per in 07 and it's just below $1200 per as of Friday.

 

I started buying Silver in 2008, not the actual coins but PMCP shares. It's value hasn't changed that much. I got in around $12 and it's been hovering around $17 for a little while.

[Meshugger]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

For me about 40% of my portfolio is tied up in gold and silver. 20% is in a few carefully chosen small cap stocks (sort of like gambling money), about 30% is split up over a few mutuals and 10% is in CDs. I got out of the NYSE all together so far as as owning individual securities. Ditto for buying currencies, too doggone unstable right now. I think I'm pretty well positioned/diversified. My 401k is mainly large cap stocks and it has just been devastated over the past two years. This year I think I'm getting rid of all the mutuals and CDs and start buying real estate. I think it's finally found the bottom.

 

 

Believe it of not my best single stock is a hamburger chain.

 

My portfoolio is very risk-minimized. Agriculture, non-investment banks and alike . Through 11 years time, it has grown by 500%! (my original deposit was not that high )

 

I have been following the rise of the Gold lately, quite interesting. Why a steady rise the last 18 months?

 

Mainly due to fear over the dollar and the US economy in general. Not just the dollar actually, many countries are dealing with devaluation of currency which compels investors to seek "real" assets. I've been wondering if it has hit the ceiling. I was thinking of divesting some of it actually. I started buying Canadian Maple Leafs in 2007 and have bought as many as I could afford every year. But the price has fallen off 11% in the last few weeks so I stopped in January. I've been watching it drop slowly but steadily and I think we might be at the ceiling. I started buying at $720 per in 07 and it's just below $1200 per as of Friday.

 

I started buying Silver in 2008, not the actual coins but PMCP shares. It's value hasn't changed that much. I got in around $12 and it's been hovering around $17 for a little while.

 

Thanks for the tip, i'll look into it more when i have some spare cash to spend!

[Humodour]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

Interesting question, but I don't think you're as interested in a response from me given the disparities in our economies.

 

And the fact that I'm still in the process of saving enough for it to be worth investing.

[Guard Dog]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

Interesting question, but I don't think you're as interested in a response from me given the disparities in our economies.

 

And the fact that I'm still in the process of saving enough for it to be worth investing.

 

Actually, you are 20 and a student at a University. Investing is probably the farthest thing from your mind right now. Five years from now that will be a different story. When I was your age a good investment is when I could get a case of cheap beer for the price of a 12 pack of premium beer.

 

Ok, I'll admit it... it still is

[Killian Kalthorne]

In the drinking of beer I prefer quality than quantity. KEYSTONE MUST DIEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!

[Walsingham]

I'm with GD. The best investment for a young chap is to cause mayhem and romance the gender of his choice.

[Humodour]

Just curious (and to make this thread more intersting) where are you guys investing these days? Those who do, what are you buying and why?

 

Interesting question, but I don't think you're as interested in a response from me given the disparities in our economies.

 

And the fact that I'm still in the process of saving enough for it to be worth investing.

 

Actually, you are 20 and a student at a University. Investing is probably the farthest thing from your mind right now. Five years from now that will be a different story. When I was your age a good investment is when I could get a case of cheap beer for the price of a 12 pack of premium beer.

 

Ok, I'll admit it... it still is

 

I had planned to have like $10,000 saved by now, but things keep popping up - rent, tax, superannuation, alcohol, a new bed (excellent for taking girls home to!), utilities bills, groceries, a new phone. So I've only got about $3,000 saved. And now I need a new computer and want to go to the Roskilde festival (or failing that, New Zealand).

 

I've got the income to support all this all while my savings increase, but it's nowhere near as fast as I predicted. Still, if I have even $20,000 saved by the time I finish uni I'll be in a decent situation.

 

The reason I am thinking about money now is because I'm 22. I should've finished uni when I was 19 or 20. And yet I'm back in my second year of a different degree. Mid-20's crisis?

 

And it also doesn't seem to be a good time to buy USD/Pounds/Euros yet (with the intention of converting back to AUD once the AUD has fallen a chunk) since Australia's economy is doing too well. The AUD is at a 25 year high to the Pound!

[Moose]

We owe it back to ourselves, it's a good trick to get us working for nothing.

Edited March 9, 2010 by Moose

[Guard Dog]

The reason I am thinking about money now is because I'm 22. I should've finished uni when I was 19 or 20. And yet I'm back in my second year of a different degree. Mid-20's crisis?

 

And it also doesn't seem to be a good time to buy USD/Pounds/Euros yet (with the intention of converting back to AUD once the AUD has fallen a chunk) since Australia's economy is doing too well. The AUD is at a 25 year high to the Pound!

 

Currency investing is only worthwhile if you are using large amounts. A few thousand AUD is not worth the time and risk. If you want to buy into a high growth investment with a small stake I'd reccomend chasing a few small cap stocks either on NASDAQ in the US, HK in China, or NNI in Japan. Go for something that is low price and a little volitile. You want a stock that has varied in price up and down over a predicatble base line over the past year or so. Then buy in at a low point and immediately put in a sell order at about 80% if its recent high point. Once the sale triggers you do it again, and again, and again. You only make a little bit on each sale but you do it over and over and over. I built up enough of a nest egg to put a down payment on my house doing this over five years. It's a strategy called "rolling" but it is not for the risk adverse either. If the stock price stabilizes you are screwed.

 

Try it yourself, pick a few low cap stocks and watch them.