Tell Us What Questions You Want Answered in the DR

A friend called us this weekend to check up after our Friday note about the ham poisoning we suffered. “Are you okay?”

“Are you really worried?”

“No. But the DR hasn’t arrived yet and I was wondering when you’d finished.”

“Oh. It’s a server issue. It should be out soon.”

“Good. I hope you wrote about the housing market today. I’m tired of reading about AIG and CDOs and global macroeconomic systems theory.”

“You know there are other readers that DO worry that the world is changing in big ways. They like reading about that stuff. Not everyone wants to read about housing prices.”

“So you say. But why don’t you just ask your readers. I’ll be they tell you they’d rather hear more about housing and less about bonds.”

“Fine. We’ll ask.”

You can tell us what you’re worried about here. All worries are welcome.

Dan Denning
for Markets and Money

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.

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173 Comments on "Tell Us What Questions You Want Answered in the DR"

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Can you explain where money really comes from? Isn’t that who will ultimately fix the financial crisis (and who caused it)? I’d like to hear more on your thoughts on those topics, especially since you think gold is the answer. Doesn’t that depend on the issuers of money to decide that gold is worth something?

Bill Flinn

What do you reckon would happen to Australian and New Zealand banks if there were to be a banking catastrophe in Europe or the US?


School Fees
Losing Private Health
Having to sell shares into this market before they rally

Greg Clements

Keep going the way you are. Prefer a comprehensive, extensive coverage rather than simply housing. Great reading and extremely insightful. Don’t always agree when the charts tell me otherwise but its great to be able to read the deconstructive views.

Scott Collingwood

I have two concerns:
1. How important to public confidence is the suppression of gold and silver prices?

2. How far do the market losses experienced recently ‘balance out’ the current maniacal expansion of the money supply, and the resultant hyper-inflation?

Thank you, gentlemen.


I am worried that I am not being taken seriously by other people (except my father who swears by his copy of None Dare Call It Conspiracy) when I mention my belief that the world in heading in an Orwellian/Globalist/Socialist direction.


Dear DR,

I am trying to understand how long the ‘bottom’ of this cycle will last if it is indeed the Greatest Depression. As a change management consultant to privately owned companies, we are getting a lot of enquiry due to fear. What everyone wants to know is how badly hit retail will be, will people spend money online… our economies are not comparable to the 1930s. Time to uncover the crystal ball!


High Octane

“The price of cheese in china” It’s outrageous!!!

Tim Collet

1. The future of gold & silver
2. The future of oil & gas
3. The future of commodities
4. The future of fiat currencies



2nd anonymous

My concerns centre on the US dollar.

If it collapses as I suspect it will then I would anticipate that the US political decision makers may attempt that age old ploy of diverting the public’s attention by starting a war possibly with China. After all if you can’t pay your debt to someone, just bomb them them back to the stone age to teach them a lesson.

Peter Harrison

How come the cretins running AIG just do not get it………how come they can hand over mega $$ of ostensibly bailout $$? I do not care about legal contracts……just can them! Let the execs try to sue for the $$, just like anyone else when a company cannot pay.

Is the psyche of the FRE execs still in mega $$ mode? How to REALLY change that?


Generally you guys are doing a great job, but can we focus more on Australia, rather than what’s happening in the US?

1. How are the regulators going to stop this happening again? What actions will the Aust Fed Govt take (if any) and when?
2. Why are shareholder votes on executive salary package “non-binding”? How can we make them binding?
3. Why is Australia’s immigration rate at record highs, while the economy struggle? (are we “importing unemployment?)
4. Why are we (the taxpayers) continuing to guarantee the Aussie banks, while the banks continue to increase their margins and become even more profitable?

Mizou Carillo
I totally agree with Dan. The problem with money creation is that every thinks they have a piece of the puzzle, but not many have got the full picture.. So, I would suggest a story (not a book, but a summarised version. a few pages??) including what lead to the famous events of 1913, roaring twenties, great depression, gold seizure, WWII, Bretton Woods, Korean War, Kennedy (including reintroduction of silver certificates 101?) Vietnam war, closing of gold window, 1971 and more recent events leading to the NOW…. Perhaps an article with FOCUS on Australia / RBA creation of money (eg)… Read more »
Ken Harrison
I enjoy the DR pretty much how it is. The contrarian view has given me confidence in the already anti-pack views that I hold against populist life decisions. That being said, apart from mining, housing and the real estate service industry would have to be the next greater part of the Australian economy (at least from some of the ABS stats I have glanced over). I hear and read many different viewpoints on the subject of Australian housing, and some quite convincing ie shortage of supply increasing demand due to immigration number, credit crunch really on affecting housing $800K and… Read more »
Kathy Krassa

Hmmm… I am worried that the financial instituion in which I have my money goes bust and they tell me Oh, that money is gone now. Also, I worry that the US debt is so huge that either the exchange rate for the US $ will plummet against all other currencies or there will be hyperinflation in the US.

Russel M

Well, I’m 52 and about 12+ years out from retirement and my super looks like an abyss. So I’ve decided to take my very considerable equity in the family home and (try) create some property wealth. But I remain uncertain about the future of property in Perth Western Australia. Rental vacancies are very low around 2-3% and there is reportedly an under-supply of around 30,000 dwellings in the state with a capacity to produce only 22,000 dwellings pa.Plus our state unemployment is about 3.5%. Is property a good longer-term proposition in WA?

Ex-pat Aussie
I am concerned about my eventual retirement plans in terms of: a) Medium term impact of the global recession on my Aussie superannuation fund which has suffered disastrously in the last year. b) Medium term impact of the global recession on my more modest share portfolio, mainly in the context of ability for companies to maintain a dividend stream, as I am not a trader. I don’t have any concerns about housing, as my investment property mortage is manageable and I was in positive cashflow long before the recession (wasn’t everyone else?… tut, tut if you weren’t). I see the… Read more »

and his band of merry chameleons.


and his band of merry chamelones


Equities, gold, corporate debentures, broad trends, risks of inflation/deflation/hyperinflation.
I think I’ll just hang onto my house, thanks.


I’m worried that you call him a friend.

Greg H
The balance is right – I’m much more interested in the big picture for context. In my opinion housing prices (or groceries, fuel, you name it) are just symptoms of the disease (although I’m as interested as the next person in the “value” of my home). Worries? Financially – Protecting what I’ve worked hard for so far (from inflation, government, etc), maximising the return on my hard work in the future, whilst ultimately leaving a world behind where my (and everyone else’s) kids have the same or better opportunities. Life generally – keeping perspective (money is purely a means to… Read more »
David Conallin

How is it that so much wealth can be “lost” by the lumps all around the world, much more than is being pumped into the system by most governments, yet this “pumping” will cause inflation in the future. As a simple non economist I am worried that I cannot understand this equation ….. Wealth Lost (stolen destroyed) cannot = all the bailouts, stimulas packages etc = inflation!
Thanks to DR

John Sloan

In addition to the Agora gang I am a long time student of von Mises, who ages ago predicted the eventual collapse of fiat money based credit schemes. Plus I study David H. Fischer – The Great Wave’ in which he noted the late 1990’s blow off of the 20th century great inflationary wave and the soon to begin massive deflation era. I think your views on the current deflation and efforts of governments to stop it and when significant inflation will recommence would be most valuable
john sloan


When are we likely to see real deflation in housing in the lower end of the market?

Why hasn’t the USD crashed since the money supply has doubled? Is China going to pull the pin soon sending gold to record levels? If I buy gold in AUD I’m worried that the AUD will fall further even if gold goes up because we are losing exports and other countries real interest rates are rising.

David Wilkinson
Amongst my many concerns:- To what extent is the GLD ETF likely to influence the gold market, particularly if the big institutional investors were to start takinng sizeable positions, especially short ones? The recent rally in the Baltic Dry Index and more recently the technical break-out of copper: the resurgence of the economic ‘raging bull’ or just a ‘flash in the pan’ due to China getting shot of US$s in return for real, tangible, raw material stockpiles (along with half of Australia’s mineral reserves). The likelihood of an IMF/World Bank controlled, new global monetary system, including the possible final removal… Read more »
bob salijevic


Australian Banks after the 3 year government guarantee
China’s foray into Oz minerals

John Weymouth
1)One concern is getting the major figures right, and getting them in perspective. I read so many apparently different figures and interpretations. I was all aboard the hyperinflation scenario until I read that the decline in wealth in the US household sector so far is 55 trillion, and that the few trillions allocated for bailouts and stimulus are insufficient. Is 55 a valid figure? What are the really key figures in this global situation? OTC derivatives, more than half of which are still outstanding, I saw recently estimated at 650 trillion, I think it was. What is the NET figure?… Read more »

-Discussion on what the visible trigger points may be when we go in the currencies from deflation to inflation or hyper inflation.
-Things that can be done to minimise losses or make gains when the trigger point occurs
– What to do with the good old house motgage preferrably just before this happens

Otherwise keep up the way you are going, it broadens our knowledge on all aspects of the markets

Thank you


Some big worries I’d like to hear more about are:
1. fresh water;
2. fertile soil;
3. food security; and
4. that modern agriculture is fast running out of the cheap energy needed to keep up its 200-year struggle trying to prove the ideas of Thomas Malthus wrong.

skinny pete

seriosuly i have been reading DR since before you arrived in Aust.
i enjoy it because you dont cover housing. Also private health, school fees are not exactly what i’d be looking to read about.

i could watch Today Tonight and find out about all these topics. Which says a bit about the people that care about this.

anyway keep the macro analysis and contrarian views flowing. Also the grilling of certain emailed letters is also entertaining.

and gold and silver analysis should be standard.

Dick from Sydney

You have to keep an eye on housing. It’s the next bubble to burst in Australia, and the sooner, the better.

Greg Atkinson
Over regulation. I fear that politicians will seek to cover their backs by implementing a raft of new measures that will stifle business and not prevent any future problems anyway. We already have plenty of regulations, they are just not enforced very well. Continued panic. A lot of the coverage about this crisis is just over the top fear mongering. Okay we are taking some hits from a nasty economic bubble, has happened before and it will happen again. It is not the end of the capitalist system or the start of a new world order. It will all be… Read more »

I’d appreciate it if you could fill in the gaps in my understanding.

How do government bonds/debt affect central bank interest rates? Or do they?

With governments going into ever more debt, how does this affect a) the bond market b) the money supply c) interest rates d) the value of currencies? That is how are all these things inter-twined, and how will the credit-crunch and government debt play on the stability central banks and their currencies?

Barry Fitzhenry

1.For those with idle cash/non-working equity, which area for aussies is safest/best to invest in for the eventual recovery?
2.For my adult kids, is it best to change investment spreads in public super funds to “capital guaranteed/cash” to avoid further losses and change back to “growth” later when the market settles?
3.The purchase of a house is the largest expenditure many aussies will ever make – so an ongoing forecast of the real estate market is A1.


My worry is interest rates. After the financial institutions have lost so much money how high will rates need to go in order for them to recover their losses? Alternatively,do they have any oher means to recover their losses?


I reckon, a lot of Daily Reckoning readers are Aussie expats like my self, I live in New York. I’m most concerned about exchange rates. Would love to here your thoughts on the AUD/USD matchup over the next few year or so.


1. Timing my sales into the bounce so as not miss it but not to sell too late

2. Jobs

Hugh Stewart

Hunter/gather by nature humanoids do not know when to quit. So when it’s good they go for more, more, more! Few other creatures express this propensity for limitless consumption – read greed. Evolved on the plains of the Serengeti our truest nature combined with our scary technologies leaves me less than optimistic. Good luck humanity you’ve missed the point.


What’s happening in New Zealand?


Continuing from your DR today regarding oil and in particular the proven reserves. What do you think will happen to the economies of the world and more particularly our way of life when the world realises the reserves of oil are not as high as published. How will businesses continue to make money when most of their profit forecasts are based on cheap oil continuing into perpetuity.

Where should one put cash? it can’t go in real estate as it is still sinking, it can’t go in stock, the market is still falling and companies are failing, it can’t go under your mattress because it loses value daily. Should money be in canned food or dried cereal in case food becomes scarce or very expensive? Should it be in fixed interest loans as a car or some such necessity? Should it be in gold coins? They could go up or down in value and their is a premium on the buy and sell side. Should it be… Read more »

I bought some “GOLD” shares in ETFS Metal Securities.
How safe is that compared to physical gold

Worries: Many and varied. * What happens if China’s efforts to maintain growth prove fruitless – growth leadership is shifting/has shifted east but what happens if that growth falters? * The loss of “ownership/control” over Australia’s strategic mineral assets – where is the Future Fund or Aust Gov’t now that funding is required? Free markets? All for them but the rules must change when certain parties use free markets for their own advantage rather than embrace them as concept they also offer to others. * Another leg down in “toxic” asset prices/US property prices and another round of large writedowns… Read more »
pedro moore

To sell or buy shares overseas is tempthing but Pershing llc charges 65 or more if uneven.I have already figured out Bush was secretly a Marxist and rumours are so is Obama.Seeds of destruction withing capitalism if Barky is also is looking strong.Class stuggle means bankers are making out very very well-secretly, if big ones anyway and do not have to worry about making gigantic mistakes as they get bailed out.


I’m not really worried, just confused….. Exactly where did all this money go, was it really there in the first place? Also, I’m worried that this could be one of the most exciting times in the history of the financial world and I can’t get onto the Forum to chat and hear other peoples’ opinions – I’m definately missing out on something. Please keep the information coming, you guys are just wonderful.

Pedro M Carlson
Things I’m curious about: 1. Peak Oil – a prioritised or chronologically listed set of ramifications of declining production. 2. Population growth – I’d like an audit on the required fundamental resources actually required to sustain the current and future population growth. 3. Alternative energy – an overview listing of how much energy can be garnered per hectare of arable (or otherwise) land from Oil Palm, Coconut Palm, Rape Seed, canola, olives, algae etc. Is there any credible alternative to 85M barrels of oil per day? 4. What would’ve been the REAL downside to just letting banks fail? If the… Read more »

By nation — E.Europe + PIGS (Portugal, Italy, Greece, Spain) — what is the outstanding government debt? AND What is the estimated CDS exposure to each?

Charles  Norville
The future of money maybe back to basics and the standards of gold and silver within the boundaries of sovereign borders, externally the standard won’t work that well i don’t think. We will need to regrow economies – Aus has a high energy materials per capita ratio (em/capita) unlike China or India. So what concerns me is the way China with such low em/capita will not be able to sell its industrials and will blackmail the US and in convincing the rest of the world increase its em/capita by taking over Aus. I know this sounds weird but do you… Read more »
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