Luxor, note that world is in recession, how to get out of itIn spite of all the QE money printing the last 6 years or more.
ie
'HSBC fears world recession with no lifeboats left
The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters'
https://www.telegraph.co.uk/finance/economics/11625098/HSBC-fears-world-recession-with-no-lifeboats-left.html
Yes, how to get out of it? You guessed it, more QE money printing but going directly to the economy.
"HSBC's Mr King says the global authorities face awful choices if the world economy hits the reefs in its current condition. The last resort may have to be "helicopter money", a radically different form of QE that injects money directly into the veins of economy by funding government spending."
Oh but you ask, where has QE money printing been going to before? Good question?
ie
'“Wrestling with Something Else”: Why this Gold Bear Market Is Different', by Frank Holmes
https://www.kitco.com/commentaries/2015-05-15/-Wrestling-with-Something-Else-Why-this-Gold-Bear-Market-Is-Different.html
"I do think that gold is going through a bear market. A lot of it has to do more with the central bankers and everything they try to do to discredit gold as an asset class, at the same time try to keep interest rates low to keep economic activity going strong. That’s been a much different factor in driving the price of gold."
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"Explain two things: one, why we never saw the hyper-inflation that people thought we were going to see with the massive amounts of quantitative easing (QE), and two, investor preferences changing from hard assets into stocks.
A: Well first of all, a lot of money didn’t really go directly into the economy. We never had a huge spike in credit supply in 2011, ’12, ’13. Only in ’14 did we start to see it really pick up.
We never got this big inflation some expected because the money is so difficult, outside of getting a car loan or an extension on a house. Even Ben Bernanke, after he left the Federal Reserve, had trouble refinancing his house following his own procedures. It’s extremely onerous to get a loan.
I think the biggest part is to follow the money. And where is the money going? It’s showing up in stocks. "
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"Q: What’s happened to the gold industry since the downturn began in 2011?
A: Well, when you take a look at the big run we had until 2006, we had very strong cash flow returns on invested capital. We had expanding free cash flow. And then a lot of the mining companies lost their focus on growth on a per-share basis. They kept doing these acquisitions (ie mergers), which made a company go from “$1 billion to $2 billion in revenue.” However, the cost of that meant that there was less gold per share in production and there were less reserves per share. You had this run-up in the cost for equipment, for exploration, for development. The result was you had seven majors lose their CEOs. And in the junior to mid-cap size, you probably had another 20 in which management was thrown out.
The new management is much more focused on capital returns (like CRK and not by consolidating shares but finding and mining gold at a profit). They have to be. Otherwise they get criticized. That will hold a lot of these managements accountable, and I think that’s very healthy. And now it’s starting to show up that the returns on capital are improving for several of these companies."
Hmmmm, still think you need to merge with 'the buy on the cheap as if gold era is over, NGN company', and someone who shall remain nameless, fell for it? Though we all know who that name is!
If you say, that NGN will make more money per shares with the smaller outstanding shares of 134 million, you are forgetting when the gold bubble starts in earnest investors will be throwing darts at gold stocks to invest in them, and it won’t matter. Plus CRK shareholders have 1/5
th less shares in NGN and will get less as other companies are merged in it. That violates your open letter to CRK shareholders in 2012 not to do that without minority shareholders agreeing to it.