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Bubble Bubble Everywhere


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2006 May 4, 2:38pm   36,934 views  364 comments

by astrid   ➕follow (0)   💰tip   ignore  

Gimme some of that bubble, boy!

Gold is now at $675/oz and silver at $13.88/oz. Do you think their prices will go up, down, or sideways (into government intervention)? Do you think there IS a bubble in gold? Do you think there WILL be a bubble in gold?

Also, please share your thoughts about any other bubble you see on the horizon.

This is a troll and postmodernism free zone. Trolls and postmodernists will be posting at their own peril. Haikus will be most welcomed.

PS - all comments posted here should not be considered investment advice. Always do your own research before making investment decisions.

#bubbles

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230   astrid   2006 May 5, 12:43pm  

SFWoman,

The Chinese have a long tradition of female infanticide or simply letting girls die in times of hardship through neglect. This situation had manifested itself in internal instability. Via higher crime rates and greater likelihood of revolutionary behavior.

I suppose the Chinese can try to coopt these futureless young men via military expeditions abroad. But that would be a risky move. Veterans are not a particularly pacific bunch, and China has enough problems without engaging in war abroad. They could not even defeat the Vietnamese!

Owneroccupier,

I think my 7th grade lab partner expressed the sentiment the best. "Americans are born to waste, thats what makes me American."

231   astrid   2006 May 5, 12:47pm  

Owneroccupier,

The Chinese managed to deal with a female shortage since forever - concubinage + relatively few warriers. I guess prostitution is pretty much inevitable. The important thing is to keep these men hoping to marry, then pull the rug from under them when they are 40 or 50 and too old to make trouble.

I have a distant relative in rural Heilongjiang. The family had 5 sons and one daughter. None of the sons married.

232   GallopingCheetah   2006 May 5, 12:49pm  

D.C.,

Your correction well taken. AH did express admiration for US industrial potential, now I remember, not for the innate propensity to fight that the tommies were so well-known for. But his Bundestag speech was probably aimed at rallying his troops by belittling the Americans. You said the Bundestag was a sham at that time. So it was probably towards the end of the war when American jackboots were already on the European continent. Just my guess.

A starving man only wants a job to feed himself. But when hunger is no longer an issue, he casts his glances at your house, garden, and perhaps your gold coins, too.

That's why the Spartans kept their men in perpetual war-like training and living environment, so as not to lose guard and become soft. Sparta survived a long time.

233   astrid   2006 May 5, 12:52pm  

SFWoman,

Sorry for erasing your target. I have an especial dislike for trolls who keep changing their handles. ;)

234   astrid   2006 May 5, 12:58pm  

GC,

Yes, the lovely Laconians. But when they went out, they did it in an awfully bloody minded way. Besides, the Athenians might have made it if there was no plague. And at least we still remember Athenian contribution to human knowledge. We know basically nothing about the Spartans, except that they oppressed a lot of Helots.

235   GallopingCheetah   2006 May 5, 1:00pm  

Also, before certain country becomes strong as she is today, would she have had the guts and clout to meddle in the Iran and North Korea nuke affairs, purposely upsetting the US plan to forestall potential nuclear threats?

236   astrid   2006 May 5, 1:05pm  

SFWoman,

Sadly, I think the latter is the case. It managed to reference a personal detail about me this afternoon.

237   astrid   2006 May 5, 1:08pm  

Standing up to America is really not that hard. Just ask Kim Jong Il. The American military is stretched very thin right now, and it's not getting much respect on the diplomatic front.

238   astrid   2006 May 5, 1:10pm  

It's an SBC account routed out of Plano, Texas. However, that doesn't mean the person posting is from the Plano area.

239   astrid   2006 May 5, 1:15pm  

SFWoman,

There's some debate about exactly how crazy Kim Jong Il is. He may simply be crazy like a fox. That guy is a survivor. Most people thought he wouldn't last two years after his father died, but he's managed so survive for over ten years, bad haircut, crooked teeth, and all.

240   GallopingCheetah   2006 May 5, 1:19pm  

Let us not be naive. If Kim Jong II didn't have "under the table" promises from God-know-who, his regime wouldn't have lasted. He was useful to some countries. I've seen this again and again in personal and social matters as well. It's always the same pattern: Some crazies are used to muddle the water while those pulling the strings in the back reap certain kinds of profit (not necessarily in monetary terms).

241   GallopingCheetah   2006 May 5, 1:22pm  

Of course, the US has done the same to those countries, for example, by supporting certain religious leaders or political dissidents. It's power play, as I said over and over again. The key is where you stand. For me, self interest rules supreme.

242   astrid   2006 May 5, 1:26pm  

SFWoman,

Zillow is pretty worthless for internal details. It is a nice way to check out a neighborhood and check the sales records. The California Google Earth add ons are very nice. However, I wouldn't trust it's valuation except as a very broad ballpark.

He is pretty pathetic. At least the last spambot/stupid troll posted legit mls sales.

243   astrid   2006 May 5, 1:32pm  

GC,

I agree this was the case in the past. China wanted a buffer from South Korea and the American presence there. But I don't think it's in China's interest to antagonize the Japanese and ROK with Kim's antics. Also, notice that Kim tries his best to go against the wishes of, uh, his Chinese masters.

A ruling elite will look out for its self interest. But its self interest can be benevalent as well as belligerant. Modern Singapore and Japan managed to run very successful states without directly oppressing anyone, except their Malaysian maids.

244   astrid   2006 May 5, 1:39pm  

Cool! Too bad I don't know any $15 million house owners.

I have to say, if I had a $15 million house, I would cash out, hire a private plane, and start looking my own South Seas fiefdom. SF is very nice, but the sea water is kind of cold.

245   GallopingCheetah   2006 May 5, 1:43pm  

Fair enough. But then again, some people are masters of acting. Let me quote a cliche -- how does one do e with that thing, I mean that thing, you know, that thing, that little thing on e, no, no, the other way, yeah, ', that is it, what do you call it? -- "nothing is what it seems." We can go on and on.

246   astrid   2006 May 5, 1:49pm  

GC,

Perhaps Kim is a Manchurian candidate, so to speak. However, that is speculative and not well backed by facts. Most Korean watchers think he's got a mind of his own, and quite a wily mind too.

I'm not educated enough to converse about the "that thing."

247   OO   2006 May 5, 2:00pm  

SFWoman,

then you will lose the low humidity weather of Norcal, and turn us into FL. Cold currents meeting warm land is exactly what makes the mediterranean weather so desirable, warm, humid weather is a dime a dozen.

There are only 4 spots in the world where you get mild weather with low humidity, the first one is of course Mediterranean Italian coast/ French Cote d'Azur, the second spot is us, third down along the Chilean coast and the last around Perth, Australia. We certainly don't want to lose this treasured seat, do we? :-)

248   astrid   2006 May 5, 2:02pm  

"Imagine the beaches of Marin or Sonoma with 84 degree water. Ahh."

That sounds excellent! Though I fear such a gift would up the BA intangibles up even further and double the rent for me!

(I heard it's the cold ocean waters that give BA such mild year around weather. Warmer ocean waters would change the weather to be more like the East Coast.)

249   astrid   2006 May 5, 2:05pm  

Owneroccupier,

What about South Africa? I thought it also has a Mediterrean climate.

250   OO   2006 May 5, 2:08pm  

South Africa unfortunatel (or fortunately?) has warm waters.

251   Garth Farkley   2006 May 5, 2:09pm  

Astrid,

You referred to our military as stretched thin. Another way to think of it is tough, lean and battle hardened. An army is not like a bank account that gets drawn down by using it. It's more like a muscle, or better yet a boxer who gets tougher through work. Certainly his opponents will respect and fear the tough, highly experienced fighter.

I saw a headline the other day -- I didn't get to read the article -- that one of the Iranian generals contradicted claims that Iran will punish the US for "evil deeds" by Israel. I tend to believe that our adversaries have more respect for our military than most Americans do. I'm certain that none of them want to face us on the battlefield, more so now when the latest generation has practical combat experience. Our military has always been huge on training, but it's not combat.

In my view, our adversaries fear and respect military power more than most of us do. War for most Americans is an abstraction and largely a moral issue. For the middle east in particular -- and especially Iran after its horrific war with Iraq -- war and military power are concrete issues of daily life. I'm inclined to believe that, though they may resent us or even hate us, our enemies respect us more than they did before we invaded Afghanistan and Iraq.

252   astrid   2006 May 5, 2:12pm  

"South Africa unfortunatel (or fortunately?) has warm waters."

Hmmm, one more reason not to move there. I heard that Iraq and Saudi Arabia has terrible summer heat and humidity due to warm Gulf waters. I imagine South Africa has something similar.

253   astrid   2006 May 5, 2:25pm  

Garth,

The US Army is having serious problems recruiting new troops and maintaining its troop level. I don't know the Arab perspective but I know the Chinese one. Gulf War I was a revelation for the Mainland Chinese, due to America's extreme efficiency. Gulf War II showed America wasn't invincible and can be worn down, just like it was worn down in Korea and Vietnam.

The US military was designed to handle two combat engagements at a time. Right now, it's occupied in Iraq and Afganistan. If America wanted to teach Iran or North Korea a lesson, where are the troops coming from?
The Bush administration sent fewer troops to Iraq than Pentagon war plans called for. The consequence is that Iraq is now one big unsecured mess outside of the Green Zone.

How are the troops not stretched thin? National guard troops, who enlisted in the belief that they would primarily serve state side, now find themselves in second and third tours of duty in Iraq. You can call these people battle hardened, but they shouldn't be in Iraq at all. They should be state side, ready to help local police with emergency situations. That was what they originally signed up for.

I didn't reference Israel for US involvement. I was thinking of the Israelis, an undeniably tough and determined people, who won war after war against vastly superior numbers. Yet, has these military successes brought them peace? No! They're still struggling with a hostile Palestinian population at home and menacing neighbors.

254   Garth Farkley   2006 May 5, 2:55pm  

Astrid,

You've made many assertions that differ from my own impressions of our recent history and current situation. Perhaps we'll take them up in the Iraq thread when we have the energy and can stand to beat up on each other for a while.

I will note one specific disagreement, to follow up on on my original point. Strictly in military terms our invasion and occupation of Iraq has surely heightened our adversaries' fear of US military power. Strictly in military terms, I can't think of any more lopsided, overwhelming miltary victory in modern history.

Please understand I'm not arguing for or against the war in this post. I'm only suggesting one consequence that is rarely discussed. And please also know that I grieve for our wounded and maimed soldiers and the families of our war dead. In fact, I also grieve for the dead and wounded Iraquis. I'm not a fan of killing in general. Having said that, the number of our casualities in conquering and occupying a hostile nation on the other side of the globe is astoundingly small, strictly in military terms. Our military successes in Iraq will not give our enemies comfort.

255   GallopingCheetah   2006 May 5, 3:02pm  

D.C. Thank you for the clarification. I especially enjoy your last sentence regarding d-c.

256   astrid   2006 May 5, 3:08pm  

DC,

Well, Stalin is special...but, well call me old fashioned, but I think it was really miscalculating the horrors of a Russian winter. The Germans didn't do all that well in Finland either.

Garth,

I'd rather concentrate on yakking about knives and money too. However, I think my thinking about post Gulf War II Iraq is quite common, both in America and abroad.

Ryan,

Yes, gum chewers have a hard lot in life.

257   OO   2006 May 5, 3:10pm  

Singapore's jury is still out. We don't know if it is going to truly grow up to become a country that can stand on its own until dictator-in-disguise Lee kicks the bucket.

I am not optimistic on Singapore going foward.

258   GallopingCheetah   2006 May 5, 3:41pm  

D.C., I re-read your reply to correct my earlier statement. I couldn't control my laughter. I learned something today. Thank you.

259   tsusiat   2006 May 5, 4:14pm  

GF--

I would have to say Britain and Argentina in the Falkland Islands was much more lopsided and impressive than Iraq, for what it was.

For pure "lopsided", Grenada also comes to mind.

260   astrid   2006 May 5, 4:42pm  

Lets go invade Lichtenstein. They must have something useful for the fat average American.

261   astrid   2006 May 5, 4:46pm  

SQT,

Things to keep in mind when interviewing personal assistants. German fluency and dystopianism. And stay away from the postmodernists, they never do as they're told. :)

As for military reserve. Well, I have met the other side of the story, and there were plenty of kids who signed up thinking they wouldn't fight in a war like Iraq. Maybe it's different for the airforce.

262   GallopingCheetah   2006 May 5, 4:46pm  

Argentina sank two British warships, if I remember correctly. One destroyer and a frigate. I distinctly remember staring at the photos of the burning Sheffield on display outside the military headquarter near my home, at an age when I was intensely interested in all things naval. It was disastrous for the British even though they won in the end. The French anti-ship missles were quite good. And the British made a mistake of using aluminum in their warships' superstructure.

This time around, the Russians were said to have sold supersonic anti-ship missles to the Iranians.

263   astrid   2006 May 5, 4:54pm  

Owneroccupier,

Benevalent dictatorships do have that pitfall. They're often more efficient than their alternatives over the short term, but they do run into problems in the long run. Singapore appears to be run more or less as a paternalistic corporate state. Singapore may be in for a hard time, especially if they can't maintain their importance as a port.

I wouldn't bet against Singapore yet, however. Taiwan has managed to make a relatively good transition to democracy with a lower basis. Singapore's population is well educated and the infrastucture is good, the people just have to start thinking for themselves.

264   requiem   2006 May 5, 5:03pm  

GWII has shown that while American forces can be worn down, they will still win any direct confrontation with ease. WRT Israel, they are in a strategic position that precludes the possibility of a "win" no matter how good their forces are. I would say that while well-disciplined and battle-hardened troops are a necessary condition for winning, it is not a sufficient condition. (It is also important to distinguish between battle-tested and battle-worn.)

If our goal in a war with Iran is to remove its ability to invade Iraq, and by extension threaten the Saudis, then that is a war that can be easily won. If our goal is regime change, we will fail. (Note that the first case does not claim to make the Strait of Hormuz safe for shipping.)

(This post may be less than coherent. If so, I blame the tequila.)

265   astrid   2006 May 5, 5:07pm  

"Note that the first case does not claim to make the Strait of Hormuz safe for shipping."

Hmmm...

Maybe we can start a post about shipping and globalization.

Or maybe we can have a weekend food and drinks recipe exchange...

Or maybe we can talk about World War I and the Russian lust for warm water, year round ports...

266   GallopingCheetah   2006 May 5, 5:09pm  

tsusiat,

I believe you missed G.F.'s point.

But, I am sure the US' rivals were watching and learning. One cannot always so readily tip his hand.

The US was forced to take action in Afghanistan and Iraq, or face a dreadful consequence of losing control ......

From Wikipedia (a source one cannot always trust):

On 27 September, 2005, only three days before leaving his post as Chairman of Joint Chief of Staff, Richard B. Myers said of the war in Iraq that, "the outcome and consequences of defeat are greater than World War II."

267   GallopingCheetah   2006 May 5, 5:10pm  

-cannot always
+should not always

268   astrid   2006 May 5, 5:21pm  

GC,

Who is your go to guy for social theory? I'm not trying to be antagonistic, I'm just curious.

269   requiem   2006 May 5, 5:31pm  

astrid,
That's what your local Irish Pub(TM) is for! (The 'TM' is there because no self-respecting /real/ Irish pub would carry anything beyond Guinness and friends.)

There is a story somewhere about a Marine general tasked to play the Iraq role while wargaming the invasion. As I recall, they had to change the simulation rules each time he did Very Bad Things to the invasion force.

For what it's worth, I don't think the insurgency card can be played in any likely conflicts in East Asia. Conflict there (be it DPRK vs. ROK, or PRC vs. ROC) would be suicidal on the part of the aggressor, as all we have to do to win is to cut supply lines and destroy large-scale military formations. The local governments are more than capable of mopping up.

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