DID I MENTION GOLD...?
IT NEEDS TO BE WATCHED BECAUSE IT'S ACTING "STRANGELY" --(ie NORMALLY) IN THIS ODD ENVIRONMENT OF MASS ECONOMIC INSANITY...
GOLD IS A LOSER...IT GOES DOWN EVERYDAY...THAT IS THE MESSAGE THE MEDIA IS TRYING TO INSTILL IN THE GENERAL PUBLIC...
BUT GOLD REFUSES TO BREAK BELOW $700 ...AND IT'S NOW BACK NEAR $800...
ALL THIS WHILE IT'S "TWIN" OIL IS PLUNGING...AND IT'S "RIVAL" THE DOLLAR IS SOARING...
NOTE TOO THAT BOND YIELDS ARE AT OR NEAR ZERO...AND CONSIDERING INFLATION BOND YIELDS ARE WELL BELOW ZERO...OR EVEN NEGATIVE.
GOLD WILL NEVER BE BELOW ZERO ON INFLATION...BECAUSE GOLD IS THE MEASURE OF INFLATION... GOLD IS THE THERMOMETER OF INFLATION.
THE DOLLAR ANOMALY IS PROBABLY GOING TO BREAK SOON...THE LIQUIDATION PANIC HAS BENEFITED THE DOLLAR OVER THE EURO...
REMEMBER THE EURO WAS NEVER A "CARRY TRADE" CURRENCY, LIKE THE DOLLAR AND THE YEN....
BUT IS THE EURO ZONE MORE OR LESS "HEALTHY" THAN THE US ECONOMY...?
I WOULD SAY IT IS HEALTHIER...LESS DEPENDENT ON CREDIT, DEBT AND DEFICITS...
TRUE IT'S A HOBSON'S CHOICE...FOR SOME...
BUT THE ALTERNATIVE IS GOLD...
HERE'S THE BIG PROBLEM:
IF JOE SIX PACK AND/OR THE STUPID HEDGE FUNDS GET THE NOTION THAT GOLD IS THE PLACE TO BE...
THE CENTRAL BANKS "CONTROL" OVER THE ECONOMY AIN'T WORTH SHIT...
IF GOLD BECOMES A MOMO PLAY AND A FUNDAMENTALS PLAY...LIKE IT WAS THIS SUMMER ....THE CENTRAL BANKS WILL HAVE TO RAISE RATES IN THE MIDDLE OF A DEPRESSION! ....AND THEN WHAT...?
WELL, THOSE CENTRAL BANK "DUMMIES" DURING THE 1930'S WILL NOT LOOK SO DUMB AFTER ALL...
MY HUNCH IS THAT THE REIGN OF THE CENTRAL BANKS IS ENDING...
THERE WILL BE A RUSH BACK TO GOLD SOON...JUST BASED ON THE TRILLIONS OF DOLLARS IN PAPER MONEY THAT THE FED AND OTHERS HAVE "STUFFED" INTO THE ECONOMY...
THUS $4+ GAS COULD "COME BACK" OVER-NIGHT...TOO HORRIBLE TO THINK ABOUT..... OR DOES ANYONE REALLY THINK ANYTHING IN THE LAST MONTH AND A HALF IS "REAL??"
AND THAT IS THE HYPER-INFLATION SCENARIO...!
BERNANKE IS SAID TO BE AN "EXPERT" IN DEPRESSION ECONOMICS...
HE SUPPOSEDLY STUDIED THE 1930'S IN AMERICA AND EUROPE...
LETS HOPE HE ALSO SPENT SOME TIME STUDYING GERMANY IN THE 1920'S...WHEN THE GREATEST HYPERINFLATION OF MODERN TIMES HIT A "DEVELOPED" NATIONAL ECONOMY...!!
THE GERMANS WERE A "LOGICAL" AND SCIENTIFIC PEOPLE IN THE 1920'S...THEY WERE NOT AFRICAN DICTATORS GONE WILD WITH THE PRINTING PRESS...
IF AND WHEN THE "MONEY DAM" THAT THE FED IS BUILDING FINALLY BREAKS...ABOUT 50% OF THAT MONEY COULD RUSH STRAIGHT INTO GOLD AND OTHER COMMODITIES...
AND A HYPER-INFLATION TSUNAMI COULD ENGULF THE WORLD...!!
