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Tony Robbins put out an economic warning recently...

pt. 1 - http://www.youtube.com/watch?v=XOfRLINVqcg

pt. 2 - http://www.youtube.com/watch?v=7ZlQDdLCgJk

I love Tony but never went to him for economic advice before LOL.  Can't really disagree with anything he's saying though.  Should be nothing to new to any readers of BHSH or Sidewinders View but thought Tony was a surprising place to start hearing this.

I just trade it day by day without any care for long-term direction but it can be fun to listen to other peoples predictions.

Maybe that is what China is doing is working it's way out of problems (USD) ?  

So, does it seem plausible that as the US investors flee equities into Treasuries that some other countries, besides China, will rush to prop up equities so that we won't have yet another crash?  Or do we just sell of some assets to prop ourselves up?

I get the article's point of view but I think we are on the verge of something catastrophic, like war, that will change all the rules.

I'm just funnin' with ya - I have no idea how all this plays out but I think it plays out sooner rather than later...  

I think that if "something" forces upwards the cost of goods from China then Americans and Europeans will still buy almost as much from China, they will just buy less in their own countries to make up the difference.

Could be a really wicked circle of the food chain.  

Your link didn't work either.  Seems only half of it got in the url:

http://oilprice.com/Finance/the-markets/American-Investors-Absorb-$4-Trillion-in-Treasuries-and-Remove-Chinas-Financial-Leverage.html

Work your way out of problems.
Don't work your way into further problems.

Hi YC
Your link didn't work (bad protocol). This one will work:
http://oilprice.com/Finance/the-markets/Its-Official-China-is-Unloading-its-Treasury-Bonds.html

From the same site (All is not as it seems):

http://oilprice.com/Finance/the-markets/American-Investors-Absorb-$4-Trillion-in-Treasuries-and-Remove-Chinas-Financial-Leverage.html

“China's "nuclear option"--selling its vast stash of U.S. Treasuries to wreak havoc on the U.S. economy and interest rates--has been downgraded by the flood of U.S. investors who have exited stocks in favor of Treasury bonds.”

“But a funny thing happened to the "nuclear option" story": American investors have absorbed almost $4 trillion in U.S. Treasuries, making domestic owners the largest holders of Treasuries. China's holdings, as vast as they are, are now a modest percentage of domestic owners--as little as 25%.”

Can a nation in  “deficit” really solve its problems, and create wealth for the country merely by stimulating internal demand?

Or by dumping stocks in companies. The same wealth creating companies that provide the necessary stimulus the US economy needs now more than ever.

Can the US address its problems and deficits by looking inwards?

CONSIDER THIS.......

I have a house to sell.
Someone from the UK buys the house.
I sell it for £500K.
The purchaser pays me my £500K.
That's £500K out of his account, and £500K into my account.
As far as the UK economy is concerned zero wealth has been created or destroyed.

However if I sell my house to Yellowcaked and he pays me the USD equivalent of £500K
The UK is now £500K richer (Especially after UK tax, Estate agent, and legal fees.    Job creation too.) but the US is now a USD equivalent £500K poorer.
 
Unless YC chooses to re-market my property at a higher price minus any costs, and banks the proceeds back in the US (minus UK tax etc.). 

Wealth created by buying then adding value to goods or/and services, so that they can be sold on at a good profit.

Work your way out of problems.
Don't work your way into further problems.

ATB 

I sure don't see this USD love affair lasting several more years.

The Chinese are easing their holdings now.  They are getting close to March 2009 levels at the bottom of the US Market.  Others are slowly following suit.

They are just tightening the noose around the U.S. neck.

All it takes is a couple of failed bond auctions before the world panics and the US has to implement austerity measures and worse.

All we need is a US/Iran/Israel/Syria war in the Mideast and our creditor nations say "no way".  Then it is up to war to make the world's decisions.

It is close to "no way" now.  How long can we expect all this credit while nations will decide to get much more on their investment elsewhere?

The US will continue to import virtually the same amount of stuff but it will come at a higher price.  This jig is virtually up.

http://oilprice.com/Finance/the-markets/Its-Official-China-is-Unloading-its-Treasury-Bonds.html

And they just keep coming!  Never before in history.


Recent occurrences

    * August 12, 2010: The Omen's creator, Jim Miekka, considered the Omen officially triggered on this date with 92 and 81 new 52-week highs and lows, respectively. The McClellan Oscillator was a negative -120.03 and the 10-week NYSE moving average was rising; the market closed above its open of 50 days prior (May 27). [5]. In the ensuing week, the Omen narrowly missed confirmation twice (August 13 and 19).

    * August 20, 2010: According to the Wall Street Journal, the omen was confirmed on Friday, with 83 new 52-week highs and 95 new 52-week lows on the NYSE. The McClellan Oscillator was a negative -106.46 and the 10-week NYSE moving average was rising; the market closed above its open of 50 days prior (June 11). [6]

    * August 24, 2010: 166 New Lows, 87 new Highs, McClellan Oscillator was negative, but the 10 week average began to fall. (Non-Confirmation.) (Although the 12 week average is still positive.)

    * August 25, 2010: 150 New Lows, 90 new Highs, McClellan Oscillator was negative, but again the 10 week average was falling (Non-Confirmation.) (Although the 12 week average is still positive.)

    * August 31, 2010: 86 New Lows, 164 new Highs, McClellan Oscillator was negative, and the 10 week moving average was up slightly 8.86 (0.13%) but falling (non-conformation)

SW,

Maybe we should have the Martin Armstrong discussion over here?

I read it.

Twice.

And I fear that I did not get enough out of it.  Feeling a little stupid here.

Usually I understand MA but this time I am not, really.

I understand what he saying about arbitrage in silver.  Reminds me of the Yen Carry Trade in some respects.  Go get something in this country, cheaper, sell in another country, higher, and you make plenty of profit.

After reading that I am not clear as to Current Account and Capital Account and what the real flow of money into and out of countries' impact is.

Maybe it all above my pay grade?

Please help if you can.  

Great day for gold and silver today.

JP Morgan may be getting out of the gold and silver manipulation business.  This story ran in Bloomberg today:

http://www.gata.org/node/8973

This is a very serious signal about failed suppression schemes and may signal that it is all over (unless some other entity takes over from JP Morgan) I have not gone from my cash into silver yet because I was expecting another knock down at the end of the month.

It did not happen.  This is/will be a 5 part series:

http://seekingalpha.com/article/223037-gold-and-silver-market-suppression-failures-flash-buy-signal

http://seekingalpha.com/article/223091-gold-and-silver-market-suppression-failures-flash-buy-signal-part-2

Thanks for the Martin Armstrong heads up, I found it and will read it later today.

Gold and silver had an amazing day today while the market did little.  More on that in the PM thread.

so far that didn't work.  You know what the say about bottom fishing.  They end up becoming lunch.  LOL. 

This video should be should be interesting to any of the traders here...

http://video.pbs.org/video/1479100777/