Bigginess

Today’s theme: things are not always as big as they appear. Doesn’t apply to me or my important bits, of course, but otherwise is a rule of nature. First, let’s talk about a place with a big, international reputation – Whistler, never more immortalized than during last year’s Olympic thingy. Now let’s add something else big, a humungous 5,500-square-foot chalet-mansion, all glass and cedar, granite and marble.

Some British dude bought it for $5.4 million six years ago, and then two years later decided to put it on the market after spiffing the place up. The asking price: $8.9 million, which was outrageous but not obscene, given the coming games and the unbridled interest this would engender among the world’s jetsetting, horny classes (who can afford $28,000 a year in property taxes).

Well, 3815 Sunridge Place just sold. After four years on the market, it went for $4,475,000. That is a 50% discount from the original list price, and a loss of about 19% on the original purchase. Factor in six years of taxes, maintenance, insurance and a crew of locals hired to wax all those phallic posts and, well, stuff adds up.

Says a local realtor: “In Whistler, we are now back to 2002 prices and still very, very soft.   Is Vancouver next?  Probably not in the same way but we will see the froth come off the top.”

Big is good. Until you aren’t.

George Papandreou was big, the head guy in Greece. So was Silvio Berlusconi, chief squeeze of Italy. This week, as you know, they’re both toast. These two countries are now being run by unelected leaders, after the elected ones were tossed on dustbin of Euro debt.

So what? So more reason to expect deflation (not inflation) will be the big thing to worry about over the next few years. Both Greece and Italy (and Britain, France, America and Canada) are rushing headlong into an austerity kick that will change the face of life.

In Europe this means reduced government pensions and public service, along with higher property and VAT taxes, and a depressed real estate market. In Canada, less government spending, more provincial and property taxes, a smaller civil service, slower economy and stagnant household incomes. And a depressed real estate market. In the US, it could take Mitt Romney to the Oval Office, with consequences most of us have not dreamed of. Including a depressed housing market.

But what does this mean for one of the big investments of 2011?

Well. As you could tell by reading this blog for the last year or two, a lot of people believed big debt would be answered only by more big government spending, resulting in big currency devaluation and even bigger inflation. And it was this debasement of currency, the bullion bunnies argued, that would propel gold (and silver) into the stratosphere and eventually lead to a new, commodity-based money.

Well, that might still happen. But the commodity may have hooves and a raspy tongue.

The best-performing real assets this year? Pigs and cows.

Hm. So what to make of such fallen expectations?

Since this pathetic blog crawled from the primordial ooze (I should clean the Bunker more often), I’ve argued against our infatuation with the physical. For reasons I have pounded into sand, real estate will disappoint mightily in the years ahead, now completely unsupported by economic fundamentals and held aloft by duct tape, HGTV, fleeting aspirations and delusional mothers-in-law. No match for debt, lost jobs or swampy incomes.

Gold, too, rode a big, emotional path skyward before stalling – yellow stuff that pays no interest or dividends, has limited use and which 99% of people don’t have since an iPad is so much more fun. The metalheads thought a debt crisis would bring down America, usher in a cleansing depression and leave them resplendent with wealth. Instead they have pieces of metal they’ll sell for less in a few years to start an RRSP.

Sometimes big sucks. Especially for the suckers.

199 comments ↓

#1 mac on 11.14.11 at 9:52 pm

I’d take that almost 25% increase in gold in a heartbeat.

As for your statment: “In Canada, less government spending, more provincial and property taxes, a smaller civil service, slower economy and stagnant household incomes.”

I think that should read, in Canada more government spending, less taxes for business, same sized civil service for now and due to the slower global economy.

We are on the cusp of more fiscal stimulus and possibly even a rate cut.

That’s the last thing I’d count on. — Garth

#2 tb on 11.14.11 at 9:57 pm

1st

#3 Cory on 11.14.11 at 9:58 pm

I am not a gold bug. I think it is a useless metal. However, golds performance can’t be denied and thouasands of years of its use/existence can’t either. Most people do not understand it, especially in North America. It is not meant to “increase” in value but it is a hedge against currency devaluation. Simply overlay gold and the USD for example and there is nothing more to say or argue.

If you own gold, you are even steven factoring in currency deval and price of gold increase. You have made zip. If you don’t own gold, you have lost.

#4 Van guy waiting on 11.14.11 at 9:59 pm

Whistler tourism is down big time over that last 5 years. I’m a regular on Whistler-Blackcomb. I’ve noticed less and less people over this time. Ever sinced the USD went down, so did the business in Whistler. I love Whistler and I’m worried things could worse and they might have to down size the resort.

#5 TurnerNation on 11.14.11 at 10:06 pm

Is this Smoking Man’s son?

http://www.theglobeandmail.com/globe-investor/investment-ideas/features/me-and-my-money/hot-for-canadian-equities-and-happy-to-take-a-risk/article2234239/

Stephen Weyman, 30
Occupation
Software developer

The portfolio
Primarily iShares S&P/TSX 60 Index Fund (XIU-T17.49-0.07-0.40%)

The investor

****“I bought Yellow Media [down 93 per cent over the past year] after learning a group of capable investment advisers had … purchased Yellow Media for themselves and their clients.”***

#6 Leslie on 11.14.11 at 10:06 pm

Lady first again, boys. Suck it up.

#7 Jimmy the Greek on 11.14.11 at 10:10 pm

Numero UNO!

#8 Peter NYC on 11.14.11 at 10:20 pm

Just heard David Kaminsky speak to a packed Boston audience. Says he chatted with Greenspan recently off the record. His view is there is no solution to euro crisis and that every major central bank will be printing money for 10 years. Said he has one investment in his portfolio based on this view. I think I know what it is!!! This is second hand info so take it for what it’s worth. And for full disclosure I personally own the yellow metal

#9 Thirty something on 11.14.11 at 10:23 pm

http://www.cbc.ca/news/canada/toronto/story/2011/11/13/tor-glass-walled-condos.html

#10 jess on 11.14.11 at 10:24 pm

Harris Bank, a division of Bank of Montreal, was the main custodian for customer money deposited with MF Global and kept in segregated accounts

http://www.chicagotribune.com/business/breaking/chi-cftc-subpoenas-harris-bank-over-mf-global-sources-20111114,0,7258807.story

#11 Crazy on 11.14.11 at 10:28 pm

Actually, upon some reflection, you are right. Hogs did perform better than bullion. Too bad yours is a Harley–You actually lost.

#12 Peter NYC on 11.14.11 at 10:34 pm

I meant to say Gary Kaminsky Cnbc

#13 TurnerNation on 11.14.11 at 10:37 pm

Whistler…on this realtor link most properties are reduced. They come and go, but most are reduced, always:

http://whistler.kijiji.ca/c-PostersOtherAds-W0QQUserIdZ4334620

#14 Keeping the Faith on 11.14.11 at 10:39 pm

#3 Cory, You’re an idiot.

Try to ‘understand it’ and ‘hedge against’ that because your logic is ‘zip’ and ‘you have lost’

#15 Foggy on 11.14.11 at 10:42 pm

Prices are stalling in the GTA. Here’s a tiny box (cottage) in the beaches that has been 67 days on the market. It’s a mere $700K but can bought as a tear-down says the breathless description. The inside has a completely unimaginative reno so it may be a flip. Looks kind of like a Vancouver special….

http://www.mls.ca/PropertyDetails.aspx?PropertyID=11095396&PidKey=-72001401

#16 Oasis on 11.14.11 at 10:44 pm

“… yellow stuff that pays no interest or dividends, has limited use..” -Garth

interesting comment. on the flip side, gold has been up 11 consecutive years, no down years, at a rate of 18%pa compounded. i’ll take that over your interest and dividends hands down.

#17 Keeping the Faith on 11.14.11 at 10:46 pm

#8 Peter NYC,

Let’s think about this … no really, that means you sit quietly, put down your blackberry and ponder, i.e. use your brain …

You listened to a guy in front of an audience tell you he ‘talked to Greenspan’ recently and based on that discussion this guy has only Gold in his portfolio, this leads you to vote it’s the bet you need to make on your financial future?!?!

Do remember it wasn’t too long ago that Greenspan also made a big bet, that the unfettered gambling in teh mortgage markets and the US housing stability would go on for ever??!!?!

Seriously, I wish your picture came up beside your post, so if I saw you walking down the street one day I could tell my girlfriend your the Biggest IDIOT on Garths site!
She would laugh and then laugh some more!
IDIOT!

#18 Fiat Freddy on 11.14.11 at 10:51 pm

#8 Peter from NYC.

Yep, you heard well. Austerity measures will eventually be too much to bear for the PIIGS and they will ditch the Euro and return to their former currencies so that they can crank up the printing presses. This will not end well…

While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth

#19 T.O house market made of Glass on 11.14.11 at 11:03 pm

http://www.cbc.ca/news/canada/toronto/story/2011/11/13/tor-glass-walled-condos.html

One little rock(interest rate hike of 1%) and the glass house will com crashing down. Even without the hike the glass house will crash. Those condo owners are going to go crazy since if cool air can come in so will the noise from the Gardner. LOL They could face 50% losses esy in a few years. The mad rush to sell is over and get out is over. Those who are left in will lose lots of money.

#20 OwlEyes on 11.14.11 at 11:11 pm

Toronto – the Glass Menagerie

#21 Peter NYC on 11.14.11 at 11:26 pm

Keeping the faith

You wish that you could point me out to your girlfriend so you can tell her that I’m an idiot. Wow you set your goals pretty high in life.

Yes I am aware of what Greenspan told other people to do with their money and also that he singlehandedly destroyed the stability of the USD as the worlds reserve currency.

This is the first time I have heard any suggestion about what he was doing with his own money.

I hope you (and your girlfriend) appreciate the clarification.

P.s. is your girlfriend code for your mommy??

#22 Frank on 11.14.11 at 11:29 pm

So buying an RRSP a good thing? If devaluation is happening, how can that be a good thing for the stock market?

#23 MB on 11.14.11 at 11:39 pm

Most gold/silver investors argue not that there won’t be deflation, but that there will be inflation due to the gov’ts response to deflation. Study the monetary policies of Argentina, Zimbabwe and Bolivia, or go back further to the Roman Empire; history repeats itself, learn it or your destined to repeat it.

#24 VICTORIA TEA PARTY on 11.14.11 at 11:41 pm

SPARE THE ROD, SPOIL THE CHILD, SAYS MR. MARKET?

Stock markets ended down in Europe and North America on Monday. It was bad technically and fundamentally, a sort of sickening, metaphorical “thud” that could be heard in peoples’ stock portfolios everywhere.

Fundamentally there’s so much debt out there, made worse by the know-it-all “elites” who seems desperately to believe that they can make water run uphill, turn lead into gold and solve our debt problems by creating more debt, that at some point Mr. Market will have to step in rain havoc on those who are not paying attention. That would be most of us BTW.

ALSO…

The way things are going in Europe with France, next into the recession dumpster, and Germany’s head frau, showing signs of total panic, maybe this reckoning is getting closer to chips-cashing time, than I’ve been thinking. Problem is, we’re the chips!

DENOUEMENT

Our “way of life” (easy street) started to wind down probably following any of the few “asset bubble” explosions during the past 12 years or so; it really doesn’t matter which one because it’s too late to change things around, anyway. Who’s gonna do it?

One US blogger (oftwominds) writes that the developed world is saturated in debt. He’s right, naturally.

Looking forward to a nasty bout of deflation sounds about right. For those deep in hock it will be an unending nightmare. Real estate will simply get killed. Our economy will be truly shredded.

WHILE WE WAIT…

Read this book : “The Great Reflation”by J. Anthony Boeckh (2010), consumingly interesting.

His view is that reflation is what’s happening now; the printing of ungodly amount of various currencies in order to cause an increase of inflation that will cheapen debts and bring back prosperity.

He writes that the outcome of such an “experiment” is not known because this kind of action has never before been executed on such a scale by those who are apparently in the know, the above mentioned “elites”, our betters, who brought us 2008, remember.

This author is a heavyweight in the financial industry, and well regarded by peers.

Back-to-the-landers may have a point after all.

#25 ottawa pete on 11.14.11 at 11:47 pm

Garth – when I asked whether LIBOR had an affect on the mortgage market in Canada/USA (apparently it does in Europe), I should have asked whether the Canadian/US *equivalent* (whatever it is called) to LIBOR had any affect here. Can you elaborate on this?

#26 BC Bring Cash on 11.14.11 at 11:53 pm

The Chinese economy is at the brink of collapse. PM Harper is trying to diversify our export markets. If the Yanks don’t buy our oil, by geeze we are going to sell our natural resources to Asia.
http://www.silverbearcafe.com/private/11.11/chinacollapse.html

#27 makedo on 11.15.11 at 12:04 am

property prices are softening on the sunshine coast….there are almost as many municipal election posters out as there are property for sale signs. the crash is moving closer to the”keep”{greater van}.prices are creeping down a little but the number of listings is huge. . everywhere i go i see ,”the property guys” ads along the streets and roads , but there not listed on the mls, i like to see competition in the real estate sales world however when people advertise through “the property guys” the price should reflect the lower quality advertising and be 2% or 3 % below the equivelent property when advertised by the big real estate companies considering the amount they charge…there ive had a rant and yes I’m a VULTURE in waiting! but it looks like a year or two before im going to feed.

#28 Humpty Dumpty on 11.15.11 at 12:05 am

This metal head would challenge your opinion G…

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/12_Jim_Rickards.html

Quiet Riot would be appropiate right about now…

Come on feel the noise
Girls rock your boys
We’ll get wild, wild, wild
Wild, wild, wild.

So you think I got an evil mind
I tell you honey

I don’t know why
I don’t know why

So you think my singin’s out of time
It makes me money

I don’t know why
I don’t know why
Anymore
Oh no

So come on feel the noise
Girls rock your boys
We’ll get wild, wild, wild
Wild, wild, wild.

Its definitely going to get wild…… Hog wild!

Yes, now I’m convinced. Good argument. — Garth

#29 gman on 11.15.11 at 12:09 am

I think the PIGS are not in as bad shape you might think. Yes the PUBLIC debt is massive, BUT the private debt is very minimal. Do you know a lot (any?) Italians with massive mortgages? Seriously they are the same int he old country. If you know the culture, they hate personal debt with a passion. For this reason, I feel the PIGS will be fine through the austerity measures. Yes pensions, etc will be less but there is no corresponding debt on the other side to be concerned about, unlike here in N. America. I read in the Globe on Saturday that the average net worth of Italians is 450k Euros. No poor at all. Greeks, Porutguese and Spain the same idea. Trust me, Italians can live on less and be fine.

#30 Maya on 11.15.11 at 12:10 am

Garth, Its a no-brainer that our Canadian housing bubble will eventually burst. But why do you believe that we are not at serious risk of entering a second recession, and a second major stock market sell-off, similar to the one in 2008? The western world is on the brink of economic collapse, while in the east, China is no help, with its SOE-dependent economy. That anybody is “buying” a house right now boggles the mind, but I also don’t understand your calmness about the near-term prospects of the stock market. You point to the VIX, but if we look back at 2008, the VIX didn’t go ballistic until the masses woke up to the fact that disaster had already arrived at their doorstep.

#31 HouseBuster on 11.15.11 at 12:10 am

Garth, Ask people who lived in Greece in 1944 about gold and its limited use.

Why? — Garth

#32 nonplused on 11.15.11 at 12:15 am

Nice post Garth.

The 5-10% portfolio allocation I made to gold many years ago is in shares of CEF in my RRSP mostly. Not the best tax strategy, I know, but they didn’t have TFSA’s back then. I should move some of it over.

When I go to sell that gold (and silver), I think it’ll be using the same clicks of the mouse I used to buy it. Gold is electronic now too, although there are custodial issues. But CEF is probably as safe as it comes, better than midnight gardening. I am certainly not going to stack gold coins up around the house.

Not sure exactly how Marc Faber put it but something like: “You give your girlfriend flowers, and I give my girlfriends gold. And I keep them longer.” Gold is the currency of love!! As long as it is universally accepted by every woman on the planet it needs no further usefulness. No matter how many times I repeat the exercise, gold jewellery for the wife and silver jewellery for the teenage daughters never fails to impress. Unless they want an i-something.

I have to admit Apple is getting a lot of mileage out of their iPod. They sell it in 3 versions: regular iPod, iPod with phone app, and large iPod. I think they used to make computers too. But computers are so 2002. Only geeky gamers still need a computer.

Motorola even has an Andriod out now that you can get a laptop type docking station for. Not sure how well it’s selling, because it’s almost as much as a netbook, but the concept is there. And once your phone is your computer, you can ditch your internet provider too. So long Telus, you dirty scumbags! Actually I haven’t had a land line in 3 years and I don’t miss it.

Many phones can already replace the router in your house. Mine cooked itself the other day and we had three wireless computers running via her phone until I made it down to Best Buy to replace the thing.

Next up, Apple and Google are going to target the phone companies themselves. Once we are all making video calls on our smart phones, the phone companies will be reduced to data carriers.

Can you get a fund that stores cows? And how do you know their tongues are raspy? Not even bovines can resist the magnetic Garth-man personality?

A lot of the rise in livestock can be attributed to ranchers having culled their herds due to high feed prices. That was bound to cause some catch up eventually. That’s how inflation works its way through the supply chain. Oil goes up, diesel and chemicals go up. Diesel and chemicals go up, the cost of farming goes up. The cost of farming goes up, the cost of feed goes up. The cost of feed goes up, the cost of cows goes up. The cost of all these things goes up, the cost of groceries goes up. It’s all connected, but it doesn’t all happen at once. In fact, the only part of the picture that isn’t seeming to go up is wages.

#33 Paul on 11.15.11 at 12:16 am

Garth, Is this what you mean when you say herd mentality? Too funny.

http://www.youtube.com/embed/NA-ST8nXl4U?rel=3D0

#34 Ozy - two words & links on 11.15.11 at 12:17 am

1. Sold the gold, silver and platinum in AUG 15 or so, at the nice peak. Waiting to crash with US Stocks soon

2. Stock Investors Take Chips Off US STOCKS in October
Despite equity markets having one of the best Octobers in recent history, U.S. stock funds continue to see robust outflows that could eclipse what we saw in 2008, says Morningstar’s Kevin McDevitt
http://www.morningstar.com/cover/videocenter.aspx?id=445169

3. Help decrease pigs\cows return of investment!
http://features.peta.org/VegetarianStarterKit/index.asp

#35 JohnnyBravo on 11.15.11 at 12:22 am

I think we need to take a step back.

I don’t think that austerity necessarily means deflation–at least not across-the-board deflation. Yes, the real economy is in a debt deflation (though perhaps not yet in Canada). The Beard at the Fed admitted as much when he said that rates would not budge until 2013. I believe now he even gave up on timing the turn and is now basically saying rate hikes will depend on inflation targets, meaning they could stay low for a very, very long time. Think Japan, as I’ve said many times before.

But what does ‘austerity’ really mean? Does it mean that governments are going to stop their expansionist monetary policies? I don’t think so. Why? Politics for one. Most people don’t really understand inflation, only nominal prices and values; so as long as their investments and savings don’t actually go down in nominal terms, you can placate them.

And monetary expansion (as manifested in various monetary and fiscal frauds) is basically the only tool the monetary and fiscal masters have to fight deflation. And fight it they will because deflation is the enemy of governments, banks, and central banks, because they all profit from inflation. Mild, persistent deflation is good for working people, but bad for the establishment.

(Deflation is also a natural course for a healthy economy as it becomes more efficient due to technological and other advances. But the financial system depends on inflation. This causes an imbalance in the system and is one reason for the massive accumulation of personal debt over the last 30 years or so.)

If only one country were to embark on a sustained policy of excessive ‘money printing’ then the risks to that country’s currency and economy would be very real. Witness Weimar Germany in the 1920’s. But remember, in economics absolute metrics don’t matter as much as relative metrics. More importantly, it’s relative rates of change that really matter. (The cost of living might double in ten years, but if your salary does as well, then it doesn’t matter much.)

So, if all trading partners inflate together at the same rate, they all get to erode the values of their respective currencies without eroding the exchange values of those currencies. At the same time, they make their debts easier to service.

But wait. Could it really be that easy? Well, under the banner of ‘there is no such thing as a free lunch’, no, it’s not. When you devalue your currency you are actually stealing wealth from those who hold that currency as a store of value.

When a country’s debts are too big to service by inflating the money supply, devaluing the currency and confiscating wealth, what do you do? (Also, even though the exchange value of a currency may not be affected in a globally coordinated monetary inflation, the value of all inflated currencies will decline against commodities, unless demand destruction balances it off. I think this is one of the tactics used by the Fed: off-set debt deflation in the real economy with credit expansion in the financial system.)

Well, in that case you have to find another way to steal wealth. This other method has been labelled ‘austerity.’ When stealth tactics are not lucrative enough, you simply reach right into the people’s pockets and openly take their money. How? By taxing them more and giving back less. Cut. Cut. Cut. Tax. Tax. Tax. Oh, and you can also sell off public (the people’s) assets. You know: land roads, bridges, islands–what have you.

Inflation. Deflation. Austerity. Yes. All together. All at the same time. The costs associated with same, paid for–one way or another– by ‘we the people.’

#36 Blacksheep on 11.15.11 at 12:23 am

Garth is 100 % correct.

I am very upset my PMs have only inflated 24% in the past 12 months.

I feel gold is certainly in a bubble, having reached a full 1% penetration of the population, I mean, who’s left to purchase?

You’ve got the Chinese Gov. buying record amounts of gold and telling the people to buy gold, but hey, their no good at business, so what do they know.

I read on Zero Hedge, Iceland is covering all Europe’s debts, so I now ignore, every time bond rates in a new PIGY country, begin to blow out.

Now that the States have a Super duper committee, they got their debt thingy handled.

And I don’t care what anyone says, I think F is ready to move rates up big and soon.

So….just like RE, it’s time bail, before this stuff, looses all intrinsic value (like it ever had any)

If any one has some bovines they would like to trade for my lousy PMs, we can meet at my bank, I’ll rent a 5 ton truck.

I figure I can keep five in the wreck room and two in the laundry room (if the wife doesn’t mind)

PS: I like the white ones with the brown spots, as long as they don’t have those pointy horns.

take care,
Blacksheep

Same tired arguments, always discredited. How many people owned oil when it spiked to $147 a barrel? Penetration is meaningless to the frothy inflation of assets. — Garth

#37 Tom from Mississauga on 11.15.11 at 12:27 am

Well the bar chart explains why I my ground beef costs so much now. Food, electricity inflation together with higher property tax and yet stagnant wages. Amazing that there are still real estate bulls out there. Looking for dividends and interest, tickers ZUT and ZCM pays more than mortgage rates if anybody out there with a troubled future needs a raise.

#38 gman on 11.15.11 at 12:29 am

Here is a good piece of data to back my claim.

http://www.gfmag.com/tools/global-database/economic-data/10403-total-debt-to-gdp.html#axzz1dkDVgP2h21bv

Italian personal debt is very low, here and back home. Italians can live on less and not bitch about it. They are actually quite disciplined personally. I know this is hard to believe but the Italians I know pay cash for everything, pay off debt faster than most and live off their garden (by choice mind you). I wouldn’t be worried about them unlike most Canadians here. I would even argue most immigrants are the same. I don’t want to get into a culture war on this blog but the habits from the old country (basically what Garth preaches) are alive and well.

Ya Berlusconi pissed away a tonne but don’t tell me there ain’t corruption here too. Did you see the 60 Minutes last night?

http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/?tag=contentMain;cbsCarousel

This is way worse. Makes me sick.

#39 Keeping the Faith on 11.15.11 at 12:31 am

#16 Oasis,

Question for you, are you an idiot in real life or do you just play one on this website?

Do you know what you are saying?
Dividends and interest in perpetuity vs gold prices going up?

Listen up … what’s the difference between gold and housing?
a) there is no diversity in gold … same as housing
b) gold doesn’t pay you to own it … same as housing
c) gold doesn’t even let you live in it … bingo! housing keeps you captive as an owner, even beyond when you are done wanting to live there, reference “The National” tonight and the story on housing in Cleveland OH

Idiots, just like heart attacks … every 10 seconds on this earth there is someone being attacked by one.
Don’t be an idiot.

#40 dd on 11.15.11 at 12:35 am

#11Crazy on 11.14.11 at 10:28 pm
Actually, upon some reflection, you are right. Hogs did perform better than bullion. Too bad yours is a Harley–You actually lost.
________________________________________
I suggest you look at the long term chart of gold and silver. Garths minute chart doesn’t tell the whole story.

Since when is a one-year chart ‘minute’? When it disagrees with you? — Garth

#41 BPOE on 11.15.11 at 12:43 am

A renters dream
http://www.cbc.ca/news/canada/british-columbia/story/2011/11/14/bc-real-estate-foreign-garossino.html

#42 mike on 11.15.11 at 12:48 am

I love it when you eviscerate the bugs :)

#43 Citizenman on 11.15.11 at 12:53 am

I thought that you may get a kick out of this link talking about living in glass houses… I mean glass condos.
http://ca.news.yahoo.com/torontos-glass-condos-face-short-lifespan-experts-114359149.html

#44 Wizard of Oz on 11.15.11 at 12:55 am

“While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth”

you are a confused chap are you not? You might want to see how the price of bullion went up 7% in 10 minutes on sept 6th 2011 when the Swiss devalued their currency in 10 minutes when the said they will peg it to the euro.

Did it hold? No. Trading move? Yes. Irrelevant. — Garth

#45 Angela on 11.15.11 at 12:59 am

#17 Keeping the Faith: “…I could tell my girlfriend your the Biggest IDIOT on Garths site!”

I believe that’s “you’re” the contraction, not “your” the possessive.

Garth, perhaps you could post the first comment every night to get the maroons fighting to be number one idiot to shut up. On second thought never mind, they’ll all just post “Second!”

#46 dd on 11.15.11 at 12:59 am

While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth
—————————————————————

Look beyond Greece to the holders of the debt. Frence, German, Spain, and US banks. I see black holes forming on the asset side of balance sheets. Governments will be forced to step in. This is only the start.

#47 Peter Goesinya on 11.15.11 at 1:22 am

DELETED

#48 Ronaldo on 11.15.11 at 1:24 am

#11 Crazy – the only Hogs I know that did well were the bank CEO’s.

#49 from kits on 11.15.11 at 1:29 am

need to start keeping record of these predictions to see how many come true..gold going lower, italy, greece, portugal, spain not dropping the euro

reducing the public sector!? That’s hilarious actually, we are still far above the levels of 2008, so we are going to cut 20% from 2008 plus more…somehow I don’t think the government has the will, elections too important…downsize means bye bye.

harper’s opposition just has to come in and promise spending with no idea how to pay for it and harper loses….it’s a lose lose for us tax payers.

our duty as tax payers
write letters to our government informing them of our 200 billion in unfunded liabilities in health care and pensions, figure out how to not pay tax, and spend the rest of the time reading informed blogs like this one for real sources of information…what more can we do? you know the government is going to screw this up regardless, it’s already written

#50 Dr.NickRiviera on 11.15.11 at 1:43 am

Garth, you should sell the remaining gold you still hold (if any) to us since, you know, it’ll be worth less in a few years time as you say. Were you not recommending people buy gold a few years back to round out their diversification? Something like 5-10% of their portfolio? Since it’s going to take a deflationary hit (as you predict) why hold onto it any longer as an inflationary hedge? Why not sell it for a stack of US dollars?

#51 Looking outside on 11.15.11 at 1:47 am

Found this interesting chart of housing prices since 1970. Canada is up there but not even close to the top.

http://www.mckinseyquarterly.com/newsletters/chartfocus/2009_10.htm

#52 Nostradamus Le Mad Vlad on 11.15.11 at 1:47 am


“Pigs and cows.” — Hah! Double cheeseburger with multiple strips of crispy fried bacon and onions, with french fries smothered in gravy (that the hors d’oeuvre) followed by Sezchuan-style stir-fried steak in black pepper sauce.

PIIGS for snax?!

“Some British dude among the world’s jetsetting , horny classes is a 50% discount from the original list price, and a loss of about 19% on the original purchase.” — In West Kelowna Monday, there was a block of new, unoccupied condos — not one had sold at the original asking price of $400K or thereabouts — that were sold at 50% off, and yes — There was a line-up for people wanting to waste their money on brix and mortar!

Carpe diem — The condo building is on First Nations land, so the newbie owners only get a 99-year land lease, unless the west is part of the Pacific Ocean before then.

“. . . rushing headlong into an austerity kick that will change the face of life this pathetic blog crawled from the primordial ooze.” — That’s why I like your (changed) 40-60 — into a 20-80 — plan into a monthly cash flow, plus stocks are 20% or so undervalued. I figure the only way they will go is steadily up, with mfg. facilities now producing goods in low-wage countries.
*
Oblunder and Truth Which do you believe?
*
“These two countries are now being run by unelected leaders . . .” — Then they can no longer be called democracies, can they? France could be next, so Germany seems to have one foot out of the door if Greece tanks; Gold demand doubles, but it’s all tungsten now, but Banks can just write off debts; Phoney Tony Blair Can anyone trust this warmonger with his dodgy dossier? I think not; Herman Cain ran Godfather’s Pizza into the ground, so he may be a good choice for Obomba’s back-up; JPM and BoA Santa Cruz cuts ties with banks.

China nearly bankrupt? Time to cash in all those IOU’s! Retail Space, Wheat Glut (is this why Harper is dismantling the Wheat Board?), Economic BS, Bond Technokrats, BB Trilateralists Take Greece and Italy; 1:32 clip Nouriel Roubini; Heinburg At growth’s end; Garth’s opposite Economic collapse? This is it!
*
Fukushima Shoes melt, and radiation in Europe — Ukraine investigated; Qatar taking body-building lessons; 6:31 clip The known universe is already established. It’s the unknown that some (me incl.) want more of.

1:10 clip New island of El Hierro releasing toxic gases; 5K Nukes Map incl. When the SAF, NMF, Yellowstone and Mt. St. Helens go bananas, that will be a great fireworks display! Playing God Mighty Mouse exists; Iran/q Fool me once . . .; Gooooogooolllliiee Hmmm. Something funny with this tech group.

#53 Bailing in BC on 11.15.11 at 1:59 am

#9 Thirty something on 11.14.11 at 10:23 pm

Somewhere in Canada, is a person thanking their lucky stars that the sale on their glass walled condo, had the subjects removed yesterday.

Meanwhile, on the other side of town… there is a person banging their head against a wall.

I know which one I’d rather be.

#54 Jane on 11.15.11 at 2:12 am

CBC The National housing in Canada tomorrow (Tuesday) should be interesting. Tonight they showed abandoned and unsaleable houses being torn down to try and stop the price decline in Cleveland, Ohio. This is the municipal plan. Trying to imagine such a decline here in Canada, but can’t.

#55 Robert Dudek on 11.15.11 at 2:33 am

China and India, both government and citizens, have an insatiable appetite for gold. Enough said.

#56 Excellent on 11.15.11 at 2:40 am

#3 Cory

“Golds performance can’t be denied and thousands of years of its use can’t be either”.
————————

Really Cory? How many thousands of years? Do you have any details on that claim by any chance? Can you offer evidence of the use of Gold as money prior to the first century BCE when the Old Testament was still just an oral history…..before it was even written?

Here is your challenge for tonight. Bring me the evidence of Golds use going back more than 2500 years and show me the proof.

Cuneiform tablets or even Egyptian hieroglyphics on papyrus are OK if they make the point and are valid proofs. Of course, I already know you can’t bring the goods because there isn’t any to bring.

All gold-bug bullshit as usual.

The Gold camp claims of a 5000, 6000 or 10,000 year history of gold use are all bunk and nonsense used to convince weak minds and loose wallets with a very thin veneer of poor evidence.

Do your best though. I am waiting.

#57 westopia on 11.15.11 at 2:44 am

FYI, devaluation is not a result of government spending, its a result of government increasing the money supply by issuing bonds to the Bank of Canada, which we’ve been doing alot of. Fortuntately, Stats Can still publishes Canada’s M3 money supply here: http://www40.statcan.gc.ca/l01/cst01/econ07-eng.htm. This debt based nature of money is why governments around the world have no choice but to inflate their way out of economic woes. Hyper or not, inflation is coming down the pike.

Fortunately, one of the things gold and silver are really good at are as a hedge against inflation. I seriously hope you’re right about the price of gold in the next few years Garth – I’ve got alot more buying to do.

#58 Excellent on 11.15.11 at 2:47 am

#18 Freddy

“While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth”
————————————-
Exactly. The ding-dongs of the gold lovers camp never seem to get that high inflation is followed by wicked interest rates. Rising rates will soften gold prices just as quick as Justin Bieber goes flaccid when served with a paternity claim.

#59 diharv on 11.15.11 at 3:15 am

#14 & #17 Keeping the Faith
Your flagrant liberal use of the word IDIOT may be offensive to some but to me , I had not laughed so hard all day.

#60 Two-thirds on 11.15.11 at 3:17 am

So, the feared “D” word is back.

Or did it ever actually leave the scene?

Of course most of the posts today will be about yellow metal – but the key message here is deflation.

As an article in The Econonomist asked pointedly some time ago – are we all Japanese now?

Deflation. For Canada, this is of course dependent on the future value of the Loonie with respect to that of the dominant trade currency. So far, the strong CAD has shielded us from our foolish ways. How much longer will this last?

From an investment point of view, it would be useful to discuss how a deflationary period would affect bonds vs equities vs commodities. How does one structure a portfolio to thrive in such an environment?

These are much more interesting/critical topics, IMHO.

#61 Where's The Money Guido??? on 11.15.11 at 3:22 am

Re; #4 Van guy waiting on 11.14.11 at 9:59 pm

Whistler tourism is down big time over that last 5 years. I’m a regular on Whistler-Blackcomb. I’ve noticed less and less people over this time. Ever sinced the USD went down, so did the business in Whistler. I love Whistler and I’m worried things could worse and they might have to down size the resort.

Yeah, tourism is down because it costs $100 for a lift ticket now. Who can afford that???? Along with the $200/night bachelor room at half price for the weekend and there goes half your week’s pay for most….not including the $10 slice of pizza for supper…..
It cost $50 just to ride that new gondola between the mountains this summer alone……HUGE RIP OFF!!!!

#62 Angus Mackay on 11.15.11 at 3:30 am

Gold actually performs very well in both inflationary and deflationary times.

Will we ever get a legit statement about gold on Garth’s blog?

Overweighting in gold is a mistake. — Garth

#63 Jimbo on 11.15.11 at 4:24 am

Garth, you comments ignore gold’s historical performance during deflationary periods.

During serious deflation, counterparty risk becomes a big concern. Individuals, companies, and even countries are becoming insolvent and going bankrupt left, right, and center. So even if you have cash parked in bank accounts, corporate bonds, treasuries, etc, you start wondering if your counterparty is going to be able to pay you back. And don’t be too confident with CDIC. In a crisis, they may pay you your money back… in installments over 30 years!

This is where gold shines. It has no counterparty risk and is liquid. It has proven itself to hold its value well during the deflationary depressions that began in 1929, 1873, 1825, 1772, and 1720. More accurately, the REAL price of gold rose in these periods.

An even more important observation found when you study history is that gold STOCKS outperformed during these depressions. Why? Gold prices held up while the operational costs of gold miners fell dramatically with the deflationary downturn. And unlike, say, a car manufacturer, gold miners’ product was in demand and liquid. So gold miners enjoyed large margins and made a lot of money for their shareholders.

Bottom line: Gold does well in EXTREMES – either hyperinflation or deflation. It does poorly in “normal times”. Do you think we are in normal times? Me neither.

Who cares? We will experience neither extreme. — Garth

#64 MasterBootLicker on 11.15.11 at 4:26 am

Joseph Goebells, (the propaganda minister for Hitler) once said, “If you repeat a lie enough times people will eventually believe it.”

#65 Phil & T on 11.15.11 at 4:48 am

Anyone like to guess how long before Italian Bond yields are back above 7%?? Even France seems to be suffering from a “spot of contagion” lately – and their Bond spread (vs. German) seems to be moving in one direction only. Not happy times ahead for one of the Planet’s largest trading Blocs.

#66 Aussie Roy on 11.15.11 at 5:42 am

Aussie Update

Blog dog or paid spruiker?.

Who are you really chatting with, when you post on that property forum or blog? A regular person like yourself, or a paid spruiker, funded by the real estate industry?

That’s the question that arose this week, when it was revealed on several major Australian property forums that groups of ‘shills’ or ‘spruikers’ may be bankrolled by big business and property groups to paint a false rosy picture of the local real estate market.

http://www.differenthere.com/2011/08/on-internet-nobody-knows-youre-dog-or.html

Interest rates up, down and around and around.

Hold onto your seatbelts, after a couple of years’ reprieve, you could be in for a wild interest rate ride. That’s the prediction of BIS Shrapnel senior manager of residential property Angie Zigomanis.

http://theage.domain.com.au/blogs/talking-property/rate-cuts-cant-last-forever-20111108-1n4rl.html

Following last weeks article, WA Budget’s housing black hole, reader amdweb82 requested that I undertake a similar analysis of Queensland’s (QLD) budgetary situation to gauge whether it is experiencing similar pressures to WA from falling home prices and lower housing transactions.

Thanks to an anonymous reader, who emailed me the data set, I now possess reliable transactions data for QLD, which has enabled me to undertake this analysis.

First up, consider the below chart, extracted from the latest QLD State Government Budget, showing the rapid rise and fall of property-related stamp duty revenues.

http://www.macrobusiness.com.au/2011/11/qld-budgets-housing-black-hole/

Aussies consumers have no plans to jump into the property market, even though savings are up and mortgage stress is down.

Those are the findings of the Commonwealth Bank/MFAA Home Finance Index for September. The survey indicated that only 16.9% of respondents are planning to buy a property in the next 12 months.

http://www.brokernews.com.au/news/breaking-news/aussies-poised-but-in-no-hurry-to-buy/120004

USA

Gen X battered, boomers grazed?.

At this time five years ago, the white-hot U.S. housing market was starting to cool. Before long, it would slip into a deep freeze.

The thaw still hasn’t come. The latest statistics show residential real estate prices are continuing to drop — a trend that could have a long-lasting impact on the net wealth of younger homeowners who bought property during the housing bubble.

The problem is that today’s prices — already down by about a third from the peak -– are still dropping. They fell in nearly three quarters of metropolitan areas during July, August and September, according to the latest report from the National Association of Realtors.

The national median price of a previously occupied house declined 4.7 percent just for the three-month period, the trade group reported.

http://www.npr.org/2011/11/13/142275958/gen-x-takes-the-housing-hit-boomers-only-grazed?ps=cprs%3Fsc%3Dfb&cc=fp

#67 Aussie Roy on 11.15.11 at 5:48 am

Aussie Update

Wow how things change in just 2 years.

First time home buyers have little confidence in the Australian economy, as they baulk at property purchases and hoard their cash, a leading consumer sentiment survey has revealed.

The Commonwealth Bank/Mortgage & Finance Association of Australia Home Finance Index has found that just 5.4 per cent of the surveyed first time buyers are intending to buy property in the next six months and more than a fifth of them (20.5%) believe property prices are currently too high.

The survey found 44 per cent of first time home buyers were delaying a property purchase because of economic conditions, while 72.1 per cent of first time home buyers were worried about the debt they would take on.

House price expectations have also dropped markedly during the year; 46.4 per cent of the respondents predict lower house prices next quarter, compared with 20.9 per cent of respondents nine months ago.

http://www.mfaa.com.au/default.asp?artid=2687&menuid=381

#68 Bob Copeland on 11.15.11 at 7:09 am

Wish I knew what to do. High income, no debt and riding on gold for 6 years. I drop dead and my kids split them up and keep trucking. Need money – sell a coin. What ba beautiful thing!
Now I’m getting a gut feeling Garth is right about gold. But where can you put the money? What doesn’t go down in a depression?

#69 Smoking Man on 11.15.11 at 7:10 am

#5 TurnerNation on 11.14.11 at 10:06 pm

Not my son but this guy is young and not affraid, he will do good.

As far as YLO that one was like a little bee sting not a biggee but anoying all the same…………

#70 Smoking Man on 11.15.11 at 7:13 am

On Fibbing

http://www.youtube.com/watch?v=P_6vDLq64gE&feature=player_embedded#!

I would eat this lady alive………

Greatest skill in the world to have but it takes practice to perfect it.

Why do teachers always discourage the young for this all to important skill…………

#71 Peter NYC on 11.15.11 at 7:51 am

While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth

Garth – it already has!

I am not hugely bullish on PM at these prices. I like your 5% suggestion. I am more comfortable with 15 to 25%. It’s not going to make you rich. But guaranteed it will be worth something when we get out at the other end of this debt crisis which has a long way to go yet.

My favorite asset class is US multi unit income property leveraged with a 30 year fixed rate mortgage if you can get one.

After US RE and PM I like your balanced approach. I have put family and friends into xcr and CBd as one stop solutions any comments?

#72 bigrider on 11.15.11 at 8:00 am

Since Garth believes deflation is the name of the game going forward, as do I, you can count on a continued devaluation of all assets, equities ,preferred and otherwise. As unemployment grows and growth stalls, we will see the first of many dividend cuts. After all, for all you preferred share humpers ,raping a company’s earnings can only continue for so long… company has to make money to pay that dividend.

I gleefully await the coming decline in RE prices here in the GTA and Vancouver, although stubbornly elusive so far.

I invested some money in 6 yards of triple mix for my backyard .My father, God bless his soul , is going to teach me how to grow a garden, since a man who can grow a garden is going to be worth far more than any financial advisor going forward.

Deflation is not depression, and there will be no economic collapse. Assets will deflate but price inflation will continue, and in this environment there will be no erosion in preferreds, since rates will be moderate, and corporate earnings continue to do what they’re doing. There will be no equity dump, just a housing dump. — Garth

#73 Steven Rowlandson on 11.15.11 at 8:15 am

Inspite of all the gold and silver market manipulation by financial and governmental institutions and all the bearish BS from financial advisors, gold and silver are still doing better than paper assets in terms of price appreciation since 1990.

Do you actually hold the same investment for 21 years? Not me. — Garth

#74 fancy_pants on 11.15.11 at 8:16 am

if you’re really big you buy an all-glass condo in Toronto:

http://ca.news.yahoo.com/torontos-glass-condos-face-short-lifespan-experts-114359149.html

…big balls that is.

#75 jess on 11.15.11 at 8:52 am

The cost of farming goes up

Florida Land Scam Targets Gullable Chinese Investors Seeking Visas
http://andrewlainton.wordpress.com/2011/07/29/florida-land-scam-targets-gullable-chinese-investors-seeking-visas/

‘land banking’ scheme not confined to the uk.
http://www.mynewsdesk.com/uk/view/pressrelease/insolvency-service-national-high-court-orders-five-land-banking-companies-into-liquidation-391681
Landbanking: the plots thickenPotential purchasers should steer clear of investment schemes that are not authorised by the FSA

technology through partnerships as China

China Plans Subsidies to Tap Shale Gas- Bloombergmobile.bloomberg.com/…/china-to-grant-subsidies-to-shale-gas-prod…Cached 20 Oct 2011 – China, estimated to hold more natural gas trapped in shale than the U.S., will … Chinese shale may hold 1275 trillion cubic feet (36 trillion cubic meters

#76 Beach Girl on 11.15.11 at 9:04 am

Sure would not want to own a big glass apartment in the sky. Never mind cleaning the windows, they are going to fall out anyway.

I was on the news last night.

I will stay on terra firma. Probably spelt that wrong, but don’t care.

Miss Daisy (Jack Russell) can just go out the door and have a dump)

#77 Future Expatriate on 11.15.11 at 9:04 am

Once again, proving the rich have no taste and even less sense. You can get a place double the size and twice as nice for one-fourth the price in Las Vegas.

Am I glad I listened to Garth and dumped all my gold at the peak.

#78 Beach Girl on 11.15.11 at 9:06 am

No, I wasn’t on the news last night, sorry, the story about all these condos that are going to crap out was on the news.

Good luck, with the resale value on that.

#79 Papa Luigi on 11.15.11 at 9:10 am

#38 Gman

You are confusing the Italian immigrants who came to Toronto and the younger generation of Italians in Italy. Apples to oranges my friend. There is very high unemployment among the younger generation in Italy. Many live as adults with their parents and grandparents. They don’t have as much debt because credit is very restrictive. Many spend what they make. Italy has to make a massive adjustment to its cost structure in order to begin to be competitive on the world markets. The situation there is not good Gman.

#80 Middle Goldfinger on 11.15.11 at 9:19 am

Look at all the good work CMHC is going – wow! I guess we’ve all been wrong about their motivation to juice the banks when it turns out that all they wanted to do was charitable work on behalf of the poor homeless people of Canada!!!

http://youtu.be/ZtgBnnUjMNs

#81 Hammer1 on 11.15.11 at 9:21 am

the cows and pigs don’t know that they have been the best
performing real assets. Gold doesn’t suffer as much as they do:
http://www.meat.org/
Buy less of these products
and support practices that are less cruel

#82 Pr on 11.15.11 at 9:38 am

For the * i won a be* metalheads: If you can stand the heat, get out of the kitchen! And follow Garth advice.

#83 bigrider on 11.15.11 at 9:39 am

#72 Garth to Bigrider- “Deflation is not a depression… there will be no equity dump just a housing dump”

I have saved this comment for posterity.

No depression correct ,but as conditions continue to worsen through job losses and asset price deflationary losses , so too will spending, thereby hampering corporate profitability. Your conclusions walk a very tight rope indeed. Hope yours are right but I think wrong.

#73 Garth to Steven Rowlandson -” Do you hold the same investment for 21 years. Not me.”

People do hold the same investment for that long ,quite often ,as a matter of fact, in but one asset class, the one that never fails (sarcasm) the holiest of the holiest(more sarcasm) the one that holds the greatest of all emotions, love.

Yup, you guessed it.

RE !!!!!!!!!!!

(a) Corporate profits have exploded since 2008, concurrent with a decline in consumer spending in North America. Your argument does not hold. (b) The reference was to gold as an investment asset, not housing. 0 for 2. — Garth

#84 JohnnyBravo on 11.15.11 at 9:48 am

#72 bigrider on 11.15.11 at 8:00 am

I think anyone who can should grow their own food. There are many, many very good reasons for doing so.

Taking a share of a company’s earnings is not rape. It’s the whole point of investing.

#85 Oasis on 11.15.11 at 10:06 am

what i find very interesting, is how Garth allows these continued personal attacks…:

#14 Keeping the Faith on 11.14.11 at 10:39 pm
#3 Cory, You’re an idiot.

followed by:
#17 Keeping the Faith on 11.14.11 at 10:46 pm
#8 Peter NYC,
Seriously, I wish your picture came up beside your post, so if I saw you walking down the street one day I could tell my girlfriend your the Biggest IDIOT on Garths site!

followed by:
#39 Keeping the Faith on 11.15.11 at 12:31 am
#16 Oasis,
Question for you, are you an idiot in real life or do you just play one on this website?

#86 Davinci on 11.15.11 at 10:19 am

Mac said
“We are on the cusp of more fiscal stimulus and possibly even a rate cut.”

Response:

That’s the last thing I’d count on. — Garth

I have to ask, what planet do you live on? Because on my planet governments do not do the right thing.

“Do you actually hold the same investment for 21 years? Not me. — Garth”

So I can assume you have no life insurance and never held Canadian dollars for any length of time. Gold is wealth insurance not an investment it’s money.

I come here from time to time to shock myself on how locked in people can be in their beliefs, and you never disappoint.

You are a smart man Garth and that’s what shocks me the most but I understand why you will never mentally understand what’s going on.

“I know that most men not only those considered clever, but even those who are very clever and capable of understanding most difficult scientific, mathematical, or philosophic, problems can seldom discern even the simplest and most obvious truth if it be such as obliges them to admit the falsity of conclusions they have formed, perhaps with much difficulty conclusions of which they are proud, which they have taught to others, and on which they have built their lives.”
– Leo Tolstoy

But it still amazes me on how you can stick to such obvious falsehoods about the dollar, gold and governments with such conviction.

Jaw dropping.

The emperor has no clothes!!!

Sigh. Gold is not money, and never will be. You bullion lovers have a massive blind spot. — Garth

#87 Disciple's replacement poster for this coming week while he's on vacation on 11.15.11 at 10:21 am

Good morning blog dogs and lurkers too.
I don’t have much time this morning,however, I just wanted to give you an update on how D is doing on his vacation.
Got a quick e-mail yesterday saying that the family is having a great and relaxing time. The vacation has been amazing, well, except for the Montezuma’s revenge( everybody got hit) and that nasty jellyfish bite.
http://www.booktrope.com/book/41/2017
Anyway, there is a strong link between the CIA and the Mexican drug cartel. The elites are inserting minute quantities of diarrhea causing agents into the food and water at Mexican holiday resorts. This will dumb down the vacationing masses and make them believe that the drug trade is only an internal Mexican problem, when in fact, the elites through their puppets( CIA) are profiting from this very lucrative trade. More on this later. Gotta go, I can’t keep up with D, he is tireless and is working hard for all of us.

#88 bigrider on 11.15.11 at 10:27 am

Did all of you know that of all the questions on a disability contract, a contract that will cover you from every physical and mental disability including depression, aside from questions like “do you skydive”
or “race motorcycles’ and various ones regarding past sicknesses and injuries ( obvious ones as insurance company wants to assess it’s risks), the funniest one is.. get ready for this..

“Are you a real estate salesperson” LMAO.

Take a guess why…LMAO

#89 Herb on 11.15.11 at 10:28 am

BREAKING NEWS: BLOGGERS DON’T READ BLOGS!

A just-completed unscientific study has concluded that bloggers don’t read comment threads before adding comments and links.

At 10:01 am yesterday, blogger GTA Girl posted a CBC link that broke the startling news that TO’ sky-high glass houses were heading for a fall. This was followed by silence in the Garthian blogosphere until OwlEyes breathlessly broke the same news with a link to Yahoo at 2:30 pm, followed four minutes later by TO BubbleBoy. By 08:15 this morning, five more bloggers had posted either the CBC or the Yahoo link as if it were new news.

Thus there were nine posters who followed the initial link with repeats of the same story. The inevitable conclusion is that bloggers don’t read comment threads before barging in broadside with their own comments.

#90 bigrider on 11.15.11 at 10:33 am

#84 Johnnybravo to Bigrider.

Yes growing your own food is a good idea.

Sharing in a companies earnings is exactly what investing is about. Correct.

Raping and pilaging a companies earnings at the expense of re-investment in it’s operations is akin to bleeding a blood doner continually day after day unitl he collapses.

I’m afraid that the hunger for yield is blinding investors to this fact.

#91 bigrider on 11.15.11 at 10:39 am

#83 Garth to Bigrider a) corporate profits have exploded since 2008 b) reference was to gold not housing ..0 for 2.

a) cost cutting will only work for so long..QE 3 ? maybe not . In an age of deleveraging and anemic growth (source Garth) expect sales to decline and hence
profitability.

b) I am aware of what the reference was pertaining to but your comment about not holding an asset for 21 years was not specific. I wanted to point out that such an asset class does exist and it is not just housing but raw land as well. It is an asset class that is revered like none other.

Score Bigrider 2 Garth Vader 0

#92 cory on 11.15.11 at 10:40 am

#9 Thirty something

Thanks for posting about the glass condos. It literally makes you feel sick.

I really feel for the first time buyers and everyone else who put all their hard earned money into crap condos like these.

#93 Chuckles the Clown on 11.15.11 at 10:41 am

#86 Disciple’s replacement poster for this coming week while he’s on vacation

You crack me up! Keep up the great work!

#94 Beach Girl on 11.15.11 at 10:45 am

Anyway, regarding Casper, my doctor.

I have a feeling he doesn’t like me. I am fit, trim, can’t pinch a inch of fat.

Don’t smoke, exercise at least 2 hours a day, only drink wine, hate fast food. Although you can get a good sub at Mr Sub for 5.00.

Sent me for exams involving cameras up my ass, squeezing my tits to death, CTS scans.

I think he was pissed off when he found out nothing was wrong with me.

I am sure this evil bastard has more in store.

#95 Golden Stu on 11.15.11 at 10:51 am

“While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth”
“Did it hold? No. Trading move? Yes. Irrelevant. — Garth”

Sorry, wrong,

Pre swiss franc devaluation

CHF 1497 / oz
10 mins later
CHF 1620 / oz

Price today…
CHF1620 …. it did exactly what it says on the tin “protect yourself from our illustrious governments destroying your wealth buy currency manipulation”

Anyone in Switzerland who did not own gold before lost 8% of their buying power in 10 minutes :-)

I’m not in Switzerland. Are you? Irrelevant. — Garth

#96 eaglebay - Parksville on 11.15.11 at 10:58 am

#26 BC Bring Cash on 11.14.11 at 11:53 pm

The Chinese economy will not crash. Not in your lifetime.
Too many people, too much money and a controlled economy.
The BC economy is crashing. Thanks in part to the stupid voters and the tree huggers.
BC has as much natural resources, Vancouver not being one of them, as the rest of Canada.
Too bad, they will not be developed. Too many “environmental studies”, moratorium, contracts cancellations, vote buying decisions, native concerns, etc… Sad really.

#97 bill C on 11.15.11 at 11:02 am

WARNING???? TREB will announce mid nov. sales in a few days. Guess what. Numbers have fallen drastically past few months and someone is fudging numbers. Not all is well in GTA. Lets see how they measure this. Ladies sales are not well out there as inventory is increasing and buyers have diminished. Many people are on shaky grounds. This will be a GTA bloodbath.

#98 Sky on 11.15.11 at 11:06 am

A secret room. Will there be prizes, Garth?

#99 Nemesis on 11.15.11 at 11:12 am

“Overweighting in gold is a mistake.” — Hon. GT

Silly me, I always thought anyone long pork bellies was at greater risk of… ‘overweighting’.

#100 Middle Goldfinger on 11.15.11 at 11:13 am

#83 bigrider on 11.15.11 at 9:39 am

(a) Corporate profits have exploded since 2008, concurrent with a decline in consumer spending in North America. Your argument does not hold. (b) The reference was to gold as an investment asset, not housing. 0 for 2. — Garth

When governments throw trillions of dollars at corporations (GM, Chrysler, McDonald’s, Harley-Davidson, almost all banks, AIG, and on an on and on), is that a true reflection of business profitability or is that a sleight of hand where taxpayers money is shown on the books as profit? That is the real reason why corporate profits have allegedly exploded since 2008 in an environment of severely declining consumption! Same with the stock market, it is juiced daily by the FOMC, same with bonds, FED, ECB, BOE, and I’m sure BOC and others such as BOJ, SNB have all resorted to QE because there are no ‘INVESTORS’ willing to bet on these risky assets. The game may continue for a while but the Day of Reckoning will come for the whole world, possibly much sooner than most expect. Just as RE has been kept alive by government intervention, so has the market at large; tread in both at your own risk.

If you choose to respond Garth, please do not resort to mud-slinging; I believe the scenario presented above is reasoned and reasonable, please respond in kind!

Profits have not ‘allegedly’ increased, they’re increased dramatically. The reason has far more to do with a sharp reduction in corporate debt, more efficiencies in workforce and overhead and a focus on global markets as opposed to domestic ones. As an investor, this supports equity valuations, regardless of whether consumer demand in North America picks up quickly or not. BTW, today’s retail numbers in the US show this is exactly the case. — Garth

#101 Living in AB on 11.15.11 at 11:27 am

Garth, I thought you banished gold as topic on this blog. What’s with all the comments. Anyhow, I still don’t understand why in this day gold is worth what it is. I thought credit would force gold to be worthless (since there is nothing really backing credit if the assets its backing was to devaluate). People don’t need real collateral to borrow anymore. So why is gold worth what it is today?

#102 eaglebay - Parksville on 11.15.11 at 11:39 am

#56 Excellent on 11.15.11 at 2:40 am

Check out King Tut and other mummies.
In a museum near you.

#103 Deperate Househusband on 11.15.11 at 11:40 am

http://guava.ca/indicators.html

All the trends are like previous years and real estate mania shows no signs of slowing down. What gives Garth?

If you are desperate to buy, then buy. You will have answered your own question. — Garth

#104 Long Gold on 11.15.11 at 11:49 am

Gold lower in a few years– what a horrible prediction–it will erase your real estate prediction victory.

here is my prediction, when interest rates start to rise, the banksters will order their media hacks to launch a massive propaganda war on gold, tell everyone its over, gold is going back to $600, the public and the funds will liquidate their gold in terrible fear, the banksters of course will be on the bid, sopping up all the gold, all the way to the bottom … a bottom that wont come until the banksters see extreme capitulation volume. Then gold starts the rebound, but the media calls it a dead cat bounce…another great selling opportunity, but something strange happens, ever rising interest rates do not halt the “crisis” and gold is moving relentlessly higher now, the public and the funds sold what little gold they had, now they have NO GOLD, not an ounce, the institutions begin to panic and flow massive liquidity into anything gold related…at much higher prices from where they sold. We will have double digit rates, the US dollar and bonds implode, gold is north of $4000, with no corrections bigger then 10% – finally with the US dollar on deaths door, the public sells all US paper at near total loss and they scrape together the few pennies they have left to buy a fraction of a gram of gold… just as gold tops and then trades sideways for 2 or 3 decades… while the public will make nothing on gold, and they sell the US$ in fear, there then comes an official US dollar lock to gold which makes US paper “as good as gold” paying double digit rates…once again the public sold at the perfectly wrong time, and the gold bugs (and banksters) take massive positions in the new and improved gold backed US paper, paying us 20% for 30 years……the public eventually sell their gold at $10 000 taking a small loss…as gold trades near its top in a range, for thirty years, grinding them all down.

The banksters will make most of the money in gold, just like they made most of the money in the real estate craze, first by lending, then by repossessing.

Thanks for embodying every point I’ve ever made about gold investors. — Garth

#105 renters rule on 11.15.11 at 11:51 am

Herb,

Don’t be such a dink. Some do not have time to read all the comments every day — but if they see something noteworthy regarding residential RE market in Canada — they will pop on to post about it.

Hmmmm, I think I see why the harperites are all over the cbc… how the heck did that story about the crap quality of canadian RE construction (particularly condo highrises) make it through the RE cartels’s publicity filters and into the MSM? Oh ya, cbc is not dependent on the RE cartel for advertisig revenue!

Agree with those who say that these condo hoods will be low income rental neighbourhoods in the future… this housing will not hold up to the elements/use over time, and they will be too expensive to restore properly or demolish. They will get minimum TLC over the years and will rent at the going “commodity rate” for their type of rental accommodation (currently about $1000 for a 1br and $1500 for a 2br in van). Many of these buildings will have the units scooped up by RE companies that will consolidate the units to become dedicated rental buildings.

Yaletown in Van is already showing its age…. 10 years from now there will not be an Urban Fare down there — the renters will not big stopping by to pick up $10 olives….

#106 eaglebay - Parksville on 11.15.11 at 12:05 pm

#81 Hammer1 on 11.15.11 at 9:21 am

On meat.org, why don’t they show that the majority of the meat processing plants are very ethical and follow rules and regulations that protect the animals and the consumers.
Don’t be biased, look at the meat packing and processing industry with an open mind. One or two bad examples don’t define the whole processing industry.
I don’t like people that are plugged up.

#107 Long Gold on 11.15.11 at 12:05 pm

Same tired arguments, always discredited. How many people owned oil when it spiked to $147 a barrel? Penetration is meaningless to the frothy inflation of assets. — Garth

are you kidding, the public and the funds took big losses as they chased oil stocks at their peaks.

Garth you have pointed out lately canada has a record 70% home ownership…this is not meaningless, the masses are smoking the media herb and buying what they are told to buy. Gold has risen much higher then housing, but the media has hated it all the way, thus, so do the sheeple.

Oil stocks at their peak were help by no greater than 6% of the population, even including mutual fund ownership. Stop making this up. — Garth

#108 eaglebay - Parksville on 11.15.11 at 12:09 pm

#85 Oasis on 11.15.11 at 10:06 am

Do you want us to be politically correct?
That’s part of what’s wrong with today’s society.
Stupid.

#109 Devore on 11.15.11 at 12:09 pm

#38 gman

Oh, you don’t wanna start a culture war, do ya? Are you Italian by chance? Why does everyone feel their culture/nationality is the most wise and responsible one? Can only Italians get by on less? Fact is, Italians borrow just as much (even more actually) as anyone else, they’ve just elected (elected, get it?) to offload more of their borrowing and spending onto public entities.

Ain’t no one gonna get out of this smelling like a rose.

#110 JohnnyBravo on 11.15.11 at 12:17 pm

#90 bigrider on 11.15.11 at 10:33 am

“Raping and pilaging a companies earnings at the expense of re-investment in it’s operations is akin to bleeding a blood doner continually day after day unitl he collapses.”

Not if it’s a growing, profitable business. If it’s not, perhaps you shouldn’t invest in it in the first place, unless it’s a promising start-up, in which case, no profits to take anyway.

#111 Van guy waiting on 11.15.11 at 12:19 pm

#61 Where’s The Money Guido??? on 11.15.11 at 3:22 am

It’s not so much the lift ticket prices. There are discount lift tickets for residents of BC and Seattle. Americans and English tourist aren’t coming here as much because of their money ain’t worth as much. When the US dollar was at $1.30, that lift ticket and hotel is like 30% for their vacation. Dining was cheaper too. When whistler lift ticket was $70 in 2006, other Colorado resorts had lift tickets for over $100.

#112 eaglebay - Parksville on 11.15.11 at 12:20 pm

#90 bigrider

“Raping and pilaging a companies earnings at the expense of re-investment in it’s operations is akin to bleeding a blood doner continually day after day unitl he collapses.”

Is this why Buffett is investing billions in companies like IBM?
How about Apple, Microsoft, TD Bank, and on and on.

#113 Long Gold on 11.15.11 at 12:22 pm

Sigh. Gold is not money, and never will be. You bullion lovers have a massive blind spot. — Garth

Once and for all Garth, would you please educate yourself on what money is, hint: it has nothing to do with whether or not wal mart will accept it as payment! Aristotle told us a long time ago……..

1.) It must be durable. Money must stand the test of time and the elements. It must not fade, corrode, or change through time.

2.) It must be portable. Money hold a high amount of ‘worth’ relative to its weight and size.

3.) It must be divisible. Money should be relatively easy to separate and re-combine without affecting its fundamental characteristics. An extension of this idea is that the item should be ‘fungible’. Dictionary.com describes fungible as:

“(esp. of goods) being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind.”

4.) It must have intrinsic value. This value of money should be independent of any other object and contained in the money itself.

Money is currency. Currency is a medium of exchange. Exchange buys stuff. Paper 3, Gold 0. — Garth

#114 eaglebay - Parksville on 11.15.11 at 12:27 pm

#100 Middle Goldfinger on 11.15.11 at 11:13 am

Obviously, accounting is not your forte.
There’s a big difference between debt and profit.

#115 JRL on 11.15.11 at 12:28 pm

I don’t read the comments, well I read a few, obviously, mostly I just don’t care what the rabble has to say about anything. Gold, I got rid of it all except for a few small mining stocks. IMO gold has no more intrinsic value than collecting hockey cards, a totally artificial construct. In fact, I got rid of everything because I’m scared about what’s going on in the world and I don’t trust the banks or insurance, mutual funds, or any of that nonsense. My next step will be a basement safe, with the only investments being canned tuna and shotgun shells. Most of all I no longer trust government to do the right thing – they will continue to borrow, tax and spend like drunken NDP sailors on shore leave no matter what and devalue the currency. The Sunshine List DOUBLED during a recession…imagine that?! They just don’t care.

#116 Long Gold on 11.15.11 at 12:31 pm

Oil stocks at their peak were help by no greater than 6% of the population, even including mutual fund ownership. Stop making this up. — Garth

come now Garth, every piddly fund owned some oil during the mania, remember the hype, it was going to $200 per barrel, they couldnt help themselves but price chase. I dont know where you get the 6% number, I cant provide you with a hard #, but i understand markets and the human condition. oil was loved, and a lot more people had $ in the market in 2007 then they do now.

#117 SQUIDLY IS GONE on 11.15.11 at 12:33 pm

Why post a picture of your own home Garth?

#118 Long Gold on 11.15.11 at 12:35 pm

I’m not in Switzerland. Are you? Irrelevant. — Garth

relevant, cuz swiss franc was considered somewhat of a “hard currency”- the competitive devaluation amongst the fiat currencies is an obvious warning sign…to get the hell out of them…even the “best” of them.

#119 Long Gold on 11.15.11 at 12:40 pm

#101…. “People don’t need real collateral to borrow anymore. So why is gold worth what it is today?”

that game only lasts so long, eventually collateral is demanded…eventually fiat currencies which are mere promises to pay implode..when people demand a hard backing. the insanity of accepting paper promises can go on a lot longer then you think possible, who would have guessed they could keep this fiat currency clown show going for more then a few decades?

#120 Form Man on 11.15.11 at 12:41 pm

Interesting post today

I spent several years working in Whistler before I moved back to the Okanagan. I suspect the so-called resort areas such as these are warning of what is to come for home prices in the rest of the country.
With regards to comments made about gold, real estate, etc, I think it is important to keep in mind that nothing goes up forever. Gold is actually a relatively useless commodity. Building homes at a faster rate than population ( or income ) growth is guaranteed to end in tears. People are indeed sheep-like, and most do buy at the top and sell at the bottom. Once the ‘shoeshine boys’ begin recommending something, it is probably time to sell. Those who respect facts and science over ideology ( or emotion ), will always come out ahead.
Garth’s investment advice is spot on…..
One last comment; if one agrees that easy lending has increased homeownership beyond what is an appropriate level, it should come as no surprise if the market ‘seizes up’. The supply of first time buyers dwindles rather than remaining constant………( exactly what has happened in Kelowna and Whistler )

#121 Deperate Househusband on 11.15.11 at 12:42 pm

I just don’t understand it….call me confused but even the stats show re-occuring trends from positive years. I understand everything reverts to its mean and the public SEEMS to be indebted but life is following along quite marrily……so confused.

#122 Excellent on 11.15.11 at 12:52 pm

#102 eaglebay – Parksville to #56 Excellent

Check out King Tut and other mummies. In a museum near you.
———————————–
Seen them first hand Eagle. Fantastic exhibit. They are in the Egyptian museum of antiquities in downtown Cairo. Very close to Tahrir incidentally.

But funerary masks and jewelry used strictly by the most elite members of the royal families and for burial purposes do not a currency make. Try again.

#123 VICTORIA TEA PARTY on 11.15.11 at 1:01 pm

#29 gman

I think the Europeans will suffer mightily for years. Doesn’t matter how much they’ve saved. It’ll be taxed away!

MEANWHILE, CHECK OUT KYLE BASS…

Kyle Bass is manager of Dallas TX-based Hayman Capital.

In 2008 he bet against subprime mortgages and made a killing.

Read his story in author Michael Lewis’ latest tome “Boomerang, Travels in the New Third World.”

In the preface Lewis describe’s Bass’s latest gambit, shorting entire COUNTRIES, not just companies!

Bass says world-wide public debt, private and government, has rocketed up by 12 per cent a year over the last 10 years, from $84-trillion to $195-trillion!

For example, with no hope of Europe repaying its debts, Bass suggests, on BBC-TV’s Hardtalk, Tuesday, that default is inevitable.

Problem is that there are two sides to the debt coin: the lender and the borrower. Who gets creamed next, out of such a scenario? The lender! Hello China!

Hardtalk: Watch this show. You’ll scare the crap out of yourself. It’s also an educational experience for finance ministers everywhere.

Not the sort of education they were expecting, mind you, but one that’ll put springs in their steps as they head for their bunkers!

#124 Long Gold on 11.15.11 at 1:08 pm

Thanks for embodying every point I’ve ever made about gold investors. — Garth

what you think is irrelevant- profits decide who is right.
I challenge you to put up a portfolio that can beat mine….

0.5% cash (wal mart emergency money)
20% gold bullion
25% GDX-NYSE market vectors gold miners
40% GDXJ-NYSE market vectors gold junior miners
8% nat gas (futures)
3% U-TSX (uranium fund)
4% POT-TSX (potash, for some agri exposure)

current prices…
CDN cash= C$1813/oz gold
gold bullion= US$1771
GDX= US$60.87
GDXJ= US$31.39
nat gas spot price=US$3.44 (Henry hub physical future)
U-TSX = C$6.10
POT-TSX= C$47.11

Beat that

I don’t gamble. Have fun. — Garth

#125 PTDBD on 11.15.11 at 1:12 pm

Many people have died in the past year in their struggle to win an elected democracy.

Isn’t it strange that during that same period financial machinations forced Italy and Greece to surrender their precious democracies. No vote, no referendum by the majority.

In the cradle of civilization unelected leaders now control the fate of the people. The populace actually cheered on this forced installation of bankercrats. Unbelievable!

#126 Middle Goldfinger on 11.15.11 at 1:25 pm

#100 Profits have not ‘allegedly’ increased, they’re increased dramatically. The reason has far more to do with a sharp reduction in corporate debt, more efficiencies in workforce and overhead and a focus on global markets as opposed to domestic ones. As an investor, this supports equity valuations, regardless of whether consumer demand in North America picks up quickly or not. BTW, today’s retail numbers in the US show this is exactly the case. — Garth

I have no way of proving your wrong, so I will grant that you may be right. However, it is a fact that there is way too much government monetary intervention in the markets for an outsider to fully understand the real picture of corporate profits. And also corporations, and governments, have been known to tweak their reports just a bit on occasion, and these occasions seem to have been arising with regular frequency of late!

But even if corporate profits have risen due to downsizing etc., how does that translate into growth which the Economy desperately needs not just to thrive but to survive?

#127 Mike on 11.15.11 at 1:36 pm

Gold actually performs very well during deflationary times . . . I encourage you all to do some research to find out more . . .

Did. — Garth

#128 Screwed in BC on 11.15.11 at 1:40 pm

If inflation is not a problem tell me what are you eating Garth.
There is inflation and deflation going on. The econocrats call it stagflation.

Exactly what I have said umpteen times. Asset deflation and price inflation. — Garth

#129 gman on 11.15.11 at 1:48 pm

109 Devore 122 Victoria Tea Party

Look I didn’t say it wasn’t going to be ugly in Europe. All I am saying is that Italian “personal” debt is low so they have the capacity to live on less. We all know the the gov’t is dysfunctional and has blown the public debt out of control. And yes unemployment among youth is high (where isn’t it?) All I am saying is that Italians will be able to handle it. Italy is not Greece, it actually has an economy. This will blow over. Key point is how long it took to buy issued Italian debt last week: a nanosecond! Enough said.

As for how much US debt China owns, it isn’t that much of the overall:

http://www.businessinsider.com/who-owns-us-debt-2011-7?op=1

China owns 8% of the overall US debt, Japan 6.4%. Wow that’s scary ain’t it? If China wanted to they could sell their US debt to Japan, a pension plan, whoever. But they won’t because they know it’s the most liquid instrument in the world and they know the US is good for it.

FYI Most of the debt is owned by the people of the US in pension plans and social programs, etc. That is the same arguement in Italy by the way. I wish people would get their facts straight on this blog. Wishful thinking I am sure

#130 Harlee on 11.15.11 at 1:55 pm

#87 Disciple’s replacement
I miss the REAL D. More provocative,more entertaining. When is he coming back?
#94 Beach
So,he’s not exactly a friendly ghost… um,doctor…then? Laugh and a half.

Time for another cup of coffee…..

#131 Long Gold on 11.15.11 at 2:07 pm

Money is currency. Currency is a medium of exchange. Exchange buys stuff. Paper 3, Gold 0. — Garth

Currency is not money.
credit cards circulate, are they money?- no they are credit. Aristotle 1, Garth 0

Cards are a money surrogate. Gold is not. Cards buy me gas and pay to resole my cowboy boots. Gold buys nothing. It ain’t money. — Garth

#132 Nostradamus Le Mad Vlad on 11.15.11 at 2:07 pm

#123 VICTORIA TEA PARTY — “Who gets creamed next, out of such a scenario? The lender! Hello China!”

Good enough reason for China and Japan to cash in the chips from Uncle Sam at the same time, while Uncle Sam is busy creating and fighting more unnecessary and pointless wars.

At some point, they will run out of everything and become expendable.

#125 PTDBD — “. . . financial machinations forced Italy and Greece to surrender their precious democracies.” — TPTB (the elite) are having an enormous amount of fun at our expense, but the tide is beginning to turn. Nothing lasts forever.
*
Dog, it’s too early in the century to wake up. I’m going back to the undiscovered parts of the universe for more sleep!

#133 fancy_pants on 11.15.11 at 2:11 pm

#89 Herb on 11.15.11 at 10:28 am

so true.

I for one do not have time to read every blog entry each and every day. I don’t even make it to this site every day but please don’t tell Garth or he may unfriend me.

As much as I may agree with Garth’s prophesies, this could be a weekly or monthly blog and we wouldn’t miss a beat. A few duplicate links here and there may help keep the site afloat.

#134 new_era on 11.15.11 at 2:14 pm

#31 :

rush on gold in 1944, greece

http://books.google.ca/books?id=JyDy_5x1VK4C&pg=PA234&lpg=PA234&dq=greece+%2B+gold+1944&source=bl&ots=MstZm9Mxa3&sig=30CCyGtrFCOdU1-5vnmZmkAhjtE&hl=en&ei=tKvCTtSHE6uGiQKr_bTHCw&sa=X&oi=book_result&ct=result&resnum=3&ved=0CC8Q6AEwAg#v=onepage&q=greece%20%2B%20gold%201944&f=false

Who possibly cares? — Garth

#135 Smoking Man on 11.15.11 at 2:22 pm

Bubble Heads, Basment Dwellers, and Garth worshipers.

Main stream media just put suger in your gas tank yet again.

FinPost
http://business.financialpost.com/2011/11/15/what-you-need-to-know-about-canadas-booming-housing-market/

Globe
http://www.theglobeandmail.com/report-on-business/economy/housing/canadian-home-sales-top-expectations/article2236756/

O man starting to feel sorry you……………..

No bubble head camp fire dance this month…LOL

#136 Devore on 11.15.11 at 2:36 pm

#129 gman

Everything will be ok in the end. No catastrophe. Life will go on. But you cannot ignore public debt overhang, because it will not go quietly into the wind. It is indicative of widespread (and widely expected and depended on) public spending, which will be curtailed, and will need to be picked up at least in part by private individuals. There is no free lunch.

As for the Italian bond sales, Italy cancelled a previous scheduled auction, and the latest auction the fine folks at ZH sniff out ECB intervention. Who knows, but centrally planned things are never as they seem.

#137 Blacksheep on 11.15.11 at 2:45 pm

Garth,

I believe you are far to intelligent /experienced to not “get” golds action for the past ten years, so I know longer spend energy debating the issue.

See…in my view, gold bullion investors (bunny’s?) are playing the anti “system” card.
The higher % of net you hold, the less you believe, said “system” is sound.

So really, this all comes down to confidence and trust.

People having witnessed the irresponsible behaviour of Banks and Governments, no longer trust the powers that be, to have the publics best interest, solely at heart.

The 99 % have little wealth, so they’re in the streets. The people with wealth (something to loose) are voting with their investment dollars.

In my opinion, you may have an anti RE stance, but come from and still fundamentally support the”system” as it stands. This is not a criticism, just an observation.

As a small business owner, I do not advocate collapse or doom for our societies . I am simply attempting to preserve hard earned capital, in the way I feel, safest doing.

You disagree and that’s OK.

take care,
Blacksheep

#138 Smell The Coffee on 11.15.11 at 2:49 pm

Its official.

Given comparisons to gold, pork and beef on the hoof, we are now in a barter economy.

I went to the Royal Bank yesterday and they wouldn’t take my old pigs or cows, but they took my old gold.

They asked me what I would do with all that the interest bearing new money at .005%.

Such a deal.

I said I’d trade em for new pigs and cows.

Makes the world go round I guess.

#139 Jimbo on 11.15.11 at 2:55 pm

> Who cares? We will experience neither extreme. — Garth

Garth, I don’t know why you even bother with writing books and speculating in real-estate. Your earnings from them are small potatoes compared to the value of the magical crystal ball you seem to hold that provides you with 100% accurate views into the future. I’m sure Goldman Sachs or some other player would pay you a hundred billion for it.

There is no valid case for either depression nor hyper-inflation. Our GreaterFool Economics Department team of classically-trained Rhesus Monkeys determined that at 7:14 this morning. Surprised you didn’t see the live coverage. — Garth

#140 Good to be out on 11.15.11 at 2:57 pm

#8 Peter from NYC.

Yep, you heard well. Austerity measures will eventually be too much to bear for the PIIGS and they will ditch the Euro and return to their former currencies so that they can crank up the printing presses. This will not end well…

While that will not happen, if it did, how is currency devaluation and inflation in Greece going to raise bullion prices? — Garth

Garth – the point is the price of gold will go up in the local currency, which is why a Greek person would buy gold. It works as a hedge against local currency devaluation if and when the printing presses do crank up. Plus its a lot easier and probably safer than maintaining savings accounts in Euro, US, or other “strong” currencies, which are more volatile and likely to lose value due to debasing as well.

Fascinating, but this is not Greece, Switzerland, Zimbabwe or the Wiemar Republic. There is no valid argument for holding gold as a disaster hedge against North American currency devaluation, only as a commodity that is correlated to inflation. — Garth

#141 Long Gold on 11.15.11 at 3:01 pm

Cards are a money surrogate. Gold is not. Cards buy me gas and pay to resole my cowboy boots. Gold buys nothing. It ain’t money. — Garth

a surrogate is a substitute. Cards and paper are substitutes for real money… gold. The substitute for physical gold is paper gold or electronic gold. The banksters dont trust each other so they demand real money (gold) to settle accounts. Sometimes banksters settle for electronic gold, but often they fly the actual metal back and forth between their vaults. Chavez in Venezuela no longer wants E-Gold credits, he wants the actual gold and it is being flown into the country right now. Ghadafi lasted as long as he did because of his gold horde, while his paper credits were seized. The Germans are afraid to repatriate a large chunk of their gold from the US where some of it is held, afraid that if they ask, they will be turned down….but uncle sam will always sell them all the Federal reserve note paper they want , hahahaha.

In the old days gold circulated amongst the masses, thus it was not just money, it was also a common currency.

Gold is money and CAN circulate, but usually does not, at least not in physical form. Paper “money” is not money but it does circulate as a means of exchange, thus it is currency but not money.

The banksters have manipulated the masses into believing money is something other then what it really is….One day wal mart will not accept your paper, and then the reality hits, then the illusions of so many decades vanish, then the people see their “money” for what it really is… a paper coupon with a promise to pay….empty promise.

As J.P. Morgan famously said to Congress in 1913, “gold is money and nothing else.”

This pointless discussion is move. When gold buys something, it will be money. Let me know. — Garth

#142 Devil's Advocate on 11.15.11 at 3:20 pm

I have been trying restrain myself but feel I need in defense of my industry respond to the comments of yesterday’s blog where a good many posters took misinformed liberty to compare the function of a REALTOR® to that of a car salesperson. To compare the two is like comparing apples to oranges to say the least. There is simply no comparison at all.

A car salesperson is an employee of the dealership. If you are not interested in purchasing one of that dealerships inventory that salesperson is SOL.

A REALTOR® is an agent of a buyer, or seller as the case may be. If you are not interested in purchasing any given property that agent might introduces you to they can, and should, show you others. They, in fact, have a fiduciary duty to find you the best fit to your stated wants and needs above and before their own interests.

A REALTOR is an agent you contract, be it in writing or implied, to do a job for you. A car salesperson is an employee employed by the dealership to do a job for them.

Another distinction which I ought to at this time enlighten you of is that when you go to a development where the developer has an onsite sales staff that sales staff is not necessarily a REALTOR. Often developers hire salespeople not unlike a car dealership. They can not, by law, sell you anything but that developers inventory.

Do yourself a service and learn something about agency and maybe you will better understand a REALTORS function under that law of agency as it applies is such that you could hardly call them “salespeople” with respect how they must treat you. They are agents who have fiduciary duties that if they neglect the courts tend to frown upon with a very heavy hand.

If you understand the law of agency you will gain a better appreciation for the need of a Buyers Representation Agreement. Without one it is pretty difficult for YOU to prove in court you had them under such exclusive contract and as such your particular personal interest might not be so well protected in the relationship as that agent might have more definitive preceding obligations to another if not themselves.

I am not a lawyer but of this I am quite certain and can tell you that not one of my lawyer clients has ever had a problem signing an Exclusive Buyer Agency Agreement. Don’t you think if it were so one sided as you believe a lawyer would be the first to object?

#143 JohnnyBravo on 11.15.11 at 3:24 pm

Quite a debate on gold here today, and a bit too much binary thinking.

Gold has a long history as money (store of value, unit of exchange, unit of account). From Ancient Rome to Aragon and beyond.

Gold used to be the money of the US and other countries. Paper bills in the US used to be certificates for gold when the dollar was defined as a certain weight of gold. Not all that long ago a person was able to redeem (not buy, but redeem) dollars for gold at the bank.

Today, we use credit money. The only thing we have today that actually approaches real money is cash. But even cash is not real money because a Bank of Canada note or a Federal Reserve note is a promise to pay (that’s why they are called ‘notes’). A promise to pay what? Nothing really.

But remarkably, you can take these little pieces of paper (or now plastic) and exchange them for actual stuff. In other words, they have/are currency. Gold (typically) cannot be used as currency, though in some circles that is changing.

One thing that has never changed is that gold is a store of value. So depending on how you define money, gold may or may not be money.

But isn’t it curious that the central banks (the purveyors of credit money) are the largest holders of gold. And when Germany and others want their gold being held by the FRBNY, the credit masters at the Fed won’t give it up. Hmm…

#144 VICTORIA TEA PARTY on 11.15.11 at 3:47 pm

#129 gman

Yes, I see your point. It’s nice that Italians seem to have personal debt under control. But what about the rest of their economy?

It is moribund and unproductive, according to economic think-tanks everywhere.

Can new PM Monti create a viable government to deal with jacking up further industrial output so those countrymen of his can keep buying down their debts and then save more of their money, through stable taxation policies, resulting in their lives being improved?

Today, Italian 10-year bonds (I’m guessing at the maturity, here) only attracted buyers who were only interested in a minimum of a 7 per cent ROR.

That is usurious, untenable and NOT GOOD for Mr. and Mrs. Italy’s collective present and future.

Mr. Monti MUST succeed as must his Greek counterpart. So far, the jury is out, but we genuinely keep our fingers crossed, because we all need monetary and fiscal success in the Euro-periphery. In fact, we DEPEND on it. Thanks, #129 for your POV. Nothing to challenge!

#145 jess on 11.15.11 at 3:54 pm

export credit agency departments

http://vimeo.com/24082278

#146 Blacksheep on 11.15.11 at 4:04 pm

DA # 142,

You don’t know when quit.

If I was a realtor (thank dog I’m not) I would have kept my mouth shut yesterday, and only commented if pushed by another dog for a response.

That response would have been metered and brief:

“A quality realtor relies solely on customer based, word of mouth references for sales and needs no contract to do business”

Total BS, but It sounds good. Face it dude, your days are sooo numbered.

take care,
Blacksheep

#147 JRL on 11.15.11 at 4:06 pm

Oh I forgot – I have a request. I think very hard times are on the horizon. I respect Garth’s opinion, and was wondering what you think is the best way to protect wealth from the coming crash, correction, or whatever you want to call it. Not that I have a lot of wealth to protect, I’m just tired of seeing my RRSP and Mutual Funds vanish into the ether of big bankster ponzi schemes. I see nothing in the future except devaluation as the Fed’s print piles of currency based on nothing – basically promissory notes backed by the future imaginary production of citizens. To me the outlook is grim.

Then read harder. This has been covered here many times. — Garth

#148 Oasis on 11.15.11 at 4:06 pm

Exactly what I have said umpteen times. Asset deflation and price inflation. — Garth
_____________________________________________

what asset deflation? average home prices in canada are at all time highs. as are commodities. so, what asset deflation are you talking about?

The greatest asset class owned by the majority of citizens in the largest economy in the world. — Garth

#149 Westernman on 11.15.11 at 4:29 pm

Re: Gold,
I don’t agree with our host on a good many issues but on gold he is right. When you can leave your house and go shopping with a pocket full of gold dust that will be the day gold is money and not before. Until then it is an abstract concept for economist wanna-be’s to shill for.

#150 Daisy Mae on 11.15.11 at 4:30 pm

“(a) Corporate profits have exploded since 2008, concurrent with a decline in consumer spending in North America.”

******************************

This comment continues to confuse me. What are the corporations doing to reap profits? They can’t be doing any better in the stock market than the average Joe. Are they buying materials/equipment from each other producing products consumers aren’t buying?

#151 Coho on 11.15.11 at 4:31 pm

Many people have died in the past year in their struggle to win an elected democracy.

Isn’t it strange that during that same period financial machinations forced Italy and Greece to surrender their precious democracies. No vote, no referendum by the majority.

In the cradle of civilization unelected leaders now control the fate of the people. The populace actually cheered on this forced installation of bankercrats. Unbelievable!

Stay tuned. More to come. Just like the middle class, nation states will be a thing of the past. They will exist in name only as the march continues towards a world central government. The last say on any matters of importance will be made by a council somewhere in Europe behind closed doors. Whatever autonomy nations states still have will be usurped by these ones, just like their wealth.

Now I need a drink. And an Amazon. — Garth

#152 Disciple's replacement poster for this coming week while he's on vacation on 11.15.11 at 4:37 pm

#106 eaglebay – Parksville
prove to me that there are ethics in the meat processing industry. It’s almost impossible to get in these places. That’s why many animal welfare groups are sending in undercover investigators to reveal the misdoings. The industry is not policing itself, and inspectors are not catching all of the infractions. You really should educate yourself, unless you really don’t care, which is probably more of the truth.
Sadly, most of the public does not care. They are really
just consumers.

#153 DonDWest on 11.15.11 at 4:37 pm

#145

Yes, Devil’s Advocate, we get it! You’re a freakin saint!

#154 Daisy Mae on 11.15.11 at 4:47 pm

“Profits have not ‘allegedly’ increased, they’re increased dramatically. The reason has far more to do with a sharp reduction in corporate debt, more efficiencies in workforce and overhead and a focus on global markets as opposed to domestic ones.”

***********************

Okay…you’ve answered my question. Thanks!

#155 Disciple's replacement poster for this coming week while he's on vacation on 11.15.11 at 4:48 pm

#130 Harlee
sorry, you will have to wait till next week. Like I said yesterday, I have only been his protege for six weeks now. It’s hard to step in and take over for Disciple. We just felt it was better to keep the posts coming so no one would miss it. Everyone will agree too, that Garth’s ghost writer is not quite the same and they can tell the difference. We just do our best. talk to y’all tomorrow….

#156 Love your Blog Garth on 11.15.11 at 5:08 pm

There is no valid case for either depression nor hyper-inflation. Our GreaterFool Economics Department team of classically-trained Rhesus Monkeys determined that at 7:14 this morning. Surprised you didn’t see the live coverage. — Garth

This blog is great for knowledge , info and at times a really good laugh. Thanks Garth

#157 April on 11.15.11 at 5:14 pm

#135 Smoking man.
The source CREA. Enough said!

#158 Nemesis on 11.15.11 at 5:15 pm

“There is no valid case for either depression nor hyper-inflation. Our GreaterFool Economics Department team of classically-trained Rhesus Monkeys determined that at 7:14 this morning. Surprised you didn’t see the live coverage.” — Hon. GT

Play fair, OldPol – not all the ‘monkeys’ on BayStreet are quite so sanguine…

[FP] – 7 reasons this is a ‘modern day depression’: Rosenberg

“A depression, put simply, is a very long period of economic malaise and when the economy fails to respond in any meaningful or lasting way to government stimulus programs,” Gluskin Sheff & Associates’ chief economist told investors Wednesday in his morning note. Sound familiar?”

http://tinyurl.com/3t8wqm3

#159 Nostradamus Le Mad Vlad on 11.15.11 at 5:28 pm


“Our GreaterFool Economics Department team of classically-trained Rhesus Monkeys determined that at 7:14 this morning.” — I would like to do a hard-hitting, forceful and well thought-out m$m piece, which they can print ad museum. Will you arrange a time and place where I can meet them? Thanks, MV!
*
Because nothing of any consequence has happened so far in the world, I thought I’d leave something to contemplate on . . .
*
MY LAST TRIP TO COSTCO

Yesterday I was at my local COSTCO buying a large bag of Purina dog chow for my loyal pet, Duke, the Wonder Dog and was in the check-out line when a woman behind me asked if I had a dog.

What did she think I had, an elephant?

So because I’m retired and have little to do, on impulse, I told her that no, I didn’t have a dog, I was starting the Purina Diet again.

I added that I probably shouldn’t, because I ended up in the hospital last time, but that I’d lost 50 pounds before I awakened in an intensive care ward with tubes coming out of most of my orifices and IVs in both arms.

I told her that it was essentially a Perfect Diet and that the way that it works is, to load your pants pockets with Purina Nuggets and simply eat one or two every time you feel hungry.

The food is nutritionally complete so it works well and I was going to try it again.

(I have to mention here that practically everyone in line was now enthralled with my story.)

Horrified, she asked if I ended up in intensive care, because the dog food poisoned me. I told her no, I stepped off a curb to sniff a poodle’s ass and a car hit me.

I thought the guy behind her was going to have a heart attack he was laughing so hard.

Costco won’t let me shop there anymore. Better watch what you ask retired people.

They have all the time in the World to think of crazy things to say. Forward this (especially) to all your retired friends . . .

#160 Devil's Advocate on 11.15.11 at 5:40 pm

#146Blacksheep on 11.15.11 at 4:04 pm

Whatever led you to believe my anonymous presence on this “pathetic blog” was a bid to earn your business?

#161 Smoking Man on 11.15.11 at 5:44 pm

#151 Coho on 11.15.11 at 4:31 pm

Dude just learn to game the system and do it well, works for me.

Ya I would like to be king too, but taking like that will only get you on the LIST hehe COINTELPRO

Our spy agency looks for radicals like you, who state gobilization and NWO stuff…….

Crack open a bottle, think deep and figure out who you are going to bend over……………

#162 Devil's Advocate on 11.15.11 at 5:44 pm

#153DonDWest on 11.15.11 at 4:37 pm

Not even remotely. But I will tell you this; I’d be far more comfortable leaving my wallet open in a room full of REALTORS® than the majority of posters on this “pathetic blog”.

Enough, boys. — Garth

#163 Coho on 11.15.11 at 5:50 pm

Now I need a drink. And an Amazon. — Garth

LOL! Yeah, I know, I wouldn’t make for a good party guest. I’d be a real downer! :-)

#164 Smoking Man on 11.15.11 at 5:50 pm

#157 April on 11.15.11 at 5:14 pm

CREA? do you think the herd will notice.

Nope
they are going to compare rent to ownership at these low rates, They are going to be inflenced by monster inlaw and wify’ee.
And they will be in a rush to do it cause authory(media) said so. Thats what happens when you spend 12 to 18 years in school learning to obay authority.

#165 eaglebay - Parksville on 11.15.11 at 5:55 pm

#152 Disciple’s replacement poster for this coming week while he’s on vacation

I know, you’re trying to be funny.
As long as I get my steak thick and fresh,I don’t care as much as you seem to.
None of those videos at meat.org have been taken in Canada. Just look at the people in the videos.
Funny guy.

#166 shanks on 11.15.11 at 6:00 pm

Vlad that is the funniest story i have ever heard.

#167 Beach Girl on 11.15.11 at 6:05 pm

#159 Nostradamus Le Mad Vlad

Totally amazing post.

When I am not so tired I will post about my manic depressed dentist. I told him a proctologist deals with holes with less action that he has to deal with.

No wonder these buggers off themselves at a higher rate than norm.

#168 Rob now in Nova Scotia on 11.15.11 at 6:06 pm

Metalheads, huh? Garth, I wouldn’t count on gold going back to $250 an ounce or silver going back to $4 an ounce any time soon. IF it does, I will just buy more. My view: excessive debt can wipe out families and countries, as well. The difference is that nations can print money topay off debt and that’s what Zimbabew did but I suppose one could argue that every citizen of Zimbabwe is a milionaire.

This isn’t Zimbabwe, and never will be. Even Nova Scotia. — Garth

#169 Kilby on 11.15.11 at 6:12 pm

#142 DA

You ARE as good as a car salesman, they only have 1/2 the formal training as realtors. Don’t be so insecure.

#170 Coho on 11.15.11 at 6:27 pm

Hi Smoking Man,

I guess the term “radical” is subjective. I know what you mean, though.

My loyalty or allegiance is to average folk — people like me. I feel that is natural, not so much radical. Elected governments which put politics first, corporations and banks second, and the people third could be considered radical by those who vote them in.

For those of us inclined to contribute, we each have our own way. I just don’t like the direction the world is headed in and I speak out about it while there is still some free speech to be had.

Learning to game the system may placate some. I’m more interested in getting to the truth of things. To each their own, I suppose.

#171 Disciple's replacement poster for this coming week while he's on vacation on 11.15.11 at 6:46 pm

#159 Nosty
too funny ! thanks for all of your posts. yours is the only one have to read every day .

#172 Ben on 11.15.11 at 6:47 pm

Guess who knows about him already?

#173 Disciple's replacement poster for this coming week while he's on vacation on 11.15.11 at 6:52 pm

#167 Beach girl
you’re too much today…… but don’t stop !

#174 Westernman on 11.15.11 at 7:13 pm

Regarding the criticisim of Devils Advocate … listen up kids – a Realtor is not your mommy, your best friend or your lawyer… a Realtor is a salesperson. Get it? A salesperson. It is up to YOU to determine the true condition and value of the property in question.

#175 Derek R on 11.15.11 at 7:14 pm

#159 Nostradamus Le Mad Vlad on 11.15.11 at 5:28 pm wrote about the Purina diet…

Your best comment ever! Thanks for the laugh.

#176 Blacksheep on 11.15.11 at 7:27 pm

DA # 160,

You have a great point, in regards to your anonymity, as I may already be getting your services for free.

I’m currently receiving Private Client Services listing updates, from two Okanagan realtors, in two different cities. Of coarse I will not kiss and tell in regards to location : )

For the unknowing dogs, this is a great way to track the RE correction as it shows:
New listing, New list, with price changes, Days on the market, Price reductions (with price history), Back on the market, Off the market and Sold.

Honing my Vulcher skills.

take care,
Blacksheep

#177 Devil's Advocate on 11.15.11 at 7:38 pm

#174 Westernman on 11.15.11 at 7:13 pm

Actually you are wrong. The feduciary duty and warranted expectation of professional advice places a far, far greater duty of care upon the shoulders of a REALTOR than one might expect of a simple salesman – with all due respect to salesmen.

#178 Q on 11.15.11 at 7:41 pm

Not to worry Garth, by February most of the leased second vehicles (BMW, Mercedes,etc SUVs) will be towed from their driveways in Oakville. By the end of March the decision will be whether to carpool to the brokerage and keep the house, or keep the other lease and face foreclosure. By May the Muskoka cottages will have been foreclosed on, just in time for the banks to hold them over the summer, before realizing they should have taken the hit in June. Won’t matter much, as Oakvillians will be too busy moving into rentals & storage units to use the cottages they can’t afford anyway….and trying to put their new bus passes on their maxed out visa cards. Should be a boom market for pawn shops…

#179 OttawaMike on 11.15.11 at 7:49 pm

I know old Herb here in Ottawa will find this interesting:

http://www.cbc.ca/news/canada/toronto/story/2011/11/13/tor-glass-walled-condos.html

#180 OttawaMike on 11.15.11 at 7:50 pm

Funny story Nosty.

Smoking Man, you are on to something.
I had my realtor buddy run a solds report for my west central neighbourhood and over a third of the multiple solds went for over list.
Out of time now but will try to post a link to my data tomorrow.

#181 ballingsford on 11.15.11 at 8:10 pm

Keep up the great work Garth! Things are getting fuzzier and fuzzier by the day, but you and the bloggers inject some clarity daily!

You are too reasonably cool and you should move back into politics! Thing though is, it’s quite a mess for someone to try to clean up!

#182 Nostradamus Le Mad Vlad on 11.15.11 at 8:20 pm


#166 shanks, #167 Beach Girl, #171 Disciple’s replacement poster for this coming week while he’s on vacation and #175 Derek R — Thanks! I just pass the jokes on!
*
Thought For The Day (wrh.com) — “He who rides a tiger cannot dismount.” — James H. Howard
*
3:16 clip Buddy, can you spare a trillion? Not mark to market CA defaults surge; OWS “Emphasis on “bowed to pressure.” wrh.com. If the Occupy Movement and Ron Paul wins 2012, someone’s yearly financial gifts from the US end; JPM can add to the mess with these; 2:34 clip What will these rebirth as? Ron Paul Right on this. If the Euro sinks, the rest of the west follows suit; Dallas Fed Just as AT&T was broken up, he calls for big banks to lose their power; 1:59 clip Havoc in EU (currencies, cheap money, strong economies); Arresting Banxters? Why not hang ’em by the balls instead?
*
Virus Son of Stuxnet; Leading “Better hurry! Ron Paul is in the lead so it’ll probably get taken down any minute!” wrh.com; 4:35 clip Layoffs at CNN; US Sheriffs rise up against feds.; Doncha jes’ luv US polytix, how it’s all fixed and rigged? Playground Bullying of Iran and Palestine must stop. WW3 will take care of that; Rosa Parks all over again, except it’s Palestine this time; 10:35 clip The US is caught between a rock and a hard place here; The Great Firewall of America Twitter, Facebook, Gargle etc. — the FBI is using them all; O-sloth In the land down under; 3:45 clip UK bombs Libya for its oil, but what’s wrong with the North Sea stuff?

#183 Daisy Mae on 11.15.11 at 8:23 pm

Lately we’ve had a company from wherever who has periodically arrived in Kelowna and West Kelowna. They set up shop at local hotels, and are encouraging us to sell our broken gold jewelry.

What do they know that we consumers don’t? Is this a good idea?

#184 Bigboy on 11.15.11 at 8:33 pm

Gordon Lightfoot interviewed at the occupy toronto site by CBC. Honestly I am sure I heard this correctly!
“there are too many people for the jobs available”! OMG, we have to get rid of a lot of people! Crap, I am going to have a stiff scotch and try and figure out how we do that, stick to the music Gord!

#185 Smoking Man on 11.15.11 at 8:37 pm

#170 Coho on 11.15.11 at 6:27 pm
Said
Learning to game the system may placate some. I’m more interested in getting to the truth of things
………………………………………………………………………
Was 911 an inside Job…Obviously!!! but who cares……..Now

Truth don’t matter, the reg folks you wana save, well they wont save you…………..It’s human nature…….

As far as the direction of the world, think of it as a boat in waves…..

You can stand in the water and try with all your might to keep it’s altitude on the same plane. Or Jump on it and ride the waves…

It’s a no brainer………….

#186 Smoking Man on 11.15.11 at 8:41 pm

#159 Nostradamus Le Mad Vlad on 11.15.11 at 5:28 pm

LMFAO dude I think I broke a rib……………

“I stepped off a curb to sniff a poodle’s ass and a car hit me.”

Classic :)

#187 Onemorething on 11.15.11 at 8:52 pm

#159 NOS LMV – now that’s priceless! Thanks for that! Hey my Hungarian Pointer’s name is DUKE!

#188 dd on 11.15.11 at 8:55 pm

So,

How easy is it to buy pig or cattle? Or even sell it?

#189 palebird on 11.15.11 at 8:57 pm

#29

Yes I know quite a few Italians and the current generation of thirty and forty something Italian/Canadians are exactly like everybody else, bigger is better and pile on the debt..now maybe their grandparents are a little different but times have changed..

#190 Where's The Money Guido??? on 11.15.11 at 9:23 pm

Re: #183 Daisy Mae on 11.15.11 at 8:23 pm

Lately we’ve had a company from wherever who has periodically arrived in Kelowna and West Kelowna. They set up shop at local hotels, and are encouraging us to sell our broken gold jewelry.

What do they know that we consumers don’t? Is this a good idea?
I went to a show from them here in Poco and they were paying 40 cents on the dollar by weight for the gold.
That’s a sure ripoff…..

#191 Onemorething on 11.15.11 at 9:35 pm

#183 Daisy May

This simply states they fear a total collapse which means the only GOLD you get to keep is what you have in REAL form and sitting in your hotel room.

GOLD prices will be controlled, to expect $2000 is probably the ceiling I believe. If it is every allowed to go further, you’d be better off with Silver, Seeds, Shotgun and Fuel!

Worst Case – GOLD owned by the elite will be valued and paid at full price (same as Preferred Shares), GOLD on Paper & Real GOLD if stored confiscated for devaluation later.

Gold stored in Hotel rooms hard to move!

5% of my net worth is in REAL Gold I can touch right now, or within a 5 minutes drive or 2 minute dig!

#192 JRoss on 11.15.11 at 9:39 pm

“Whatever led you to believe my anonymous presence on this”

You mean besides the instances where you have solicited readers to email you at [email protected] for more information on actual price statistics?

#193 JRoss on 11.15.11 at 9:42 pm

Oops – I’ll try again

Above was meant in response to this quote from DA

“Whatever led you to believe my anonymous presence on this “pathetic blog” was a bid to earn your business?

#194 Daisy Mae on 11.15.11 at 10:17 pm

Thank you, Guido and OneMoreThing. I suspected as much, being the skeptic that I am!

#195 Timing is Everything on 11.15.11 at 10:33 pm

Thanks Nosty…This pathetic blog needed that.

Just to be clear….The Purina ‘Senior’ Diet, right…?

#196 Devil's Advocate on 11.15.11 at 10:56 pm

Thank you for that advertisement of my anonymous email address created for the sole purpose of being so.

Look, if I was out looking to make friends don’t you think this would be the LAST place I would seek to do so. And if it weren’t don’t you think I would be just a little more kind and tolerant in my condemnation of the prevalent mindset here? If I was looking for business don’t you think as a purveyor of homes I might go somewhere a market for my services actually exists instead of one where the bulk are thousands of miles away and self-professed terminal renters?

Sheesh, does the concept of logic defy you so that you cannot grant another might have a shred more of it than you.

#197 TurnerNation on 11.15.11 at 11:12 pm

And are still awaiting a report from Beach girl’s psychriatrist exam. Should be interesting.

#198 JRoss on 11.16.11 at 12:34 am

DA,

Dude, don’t get pissed at me. You are the one who put it up here. In fact, I couldn’t remember exactly what it was so I googled ‘Kelownial Devil’ and YOUR POST with the email came up.

But I do understand why you might lash out. It must be pretty embarrassing publically getting hoisted on one’s one petard.

As for the rest of it, I can’t begin to understand why you come here to get beat up everyday.

#199 Onemorething on 11.16.11 at 7:47 pm

#198 JRoss,

He comes here everyday so he can feel the pain of what his industry is about to deal him….pain.

Nothing wrong with a great RE Agent but you have to know as with anything when to get out at the top.