Tuesday, June 2, 2009

MARKET WILL RALLY UNTIL IT SLIPS ON OIL....

AS LONG AS OIL AND GOLD ARE "ALLOWED" TO RISE...AND THE DOLLAR TO FALL...THE DOW CAN RALLY ON...

NET NET...NONE OF THE RISE IN STOCKS WILL BE "REAL"...IT WILL ALL BE "NOMINAL."

BUT AT SOME POINT THE PRICE OF GAS WILL CAUSE PROBLEMS...

OTHER COMMODITIES...BESIDE FOOD...ARE MOSTLY USED FOR PRODUCTION IN ULTRA-LOW WAGE ECONOMIES LIKE CHINA... SO "INFLATION" IN PRODUCED GOODS MAY BE "EATEN" BY THE CHINESE FOR A WHILE...

CENTRAL BANKS WILL CONTINUE TO "DIVERSIFY" OUT OF THE DOLLAR AND INTO THE EURO...GOLD IF POSSIBLE...AND OTHER HARD COMMODITIES...

THE REAL TEST WILL BE IF OBAMA AND BERNANKE CAN "JUMP START" A US ECONOMY THAT IS IN EFFECT A STRUCTURAL ZOMBIE...

ANY RECOVERY FROM THIS DEPRESSION WILL NOT BE NORMAL OR NATURAL...IT WILL BE THE ECONOMIC EQUIVALENT OF RISING LAZARUS FROM THE DEAD....!

IN OTHER WORDS IF THIS WORKS...IT WILL BE MORE A MIRACLE....THAN ECONOMICS.