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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: loantech who wrote (20753)9/11/2006 9:52:23 PM
From: John McCarthy  Read Replies (2) of 78419
 
thank you ....

this article makes sense ......
the part that I cannot SEE is this part ....

>>>>>>>>>>>>
I suspect that hedge funds and momentum traders are playing this commodity sell-off move with a $USD hedge
>>>>>>>>>>>>

would someone EXPLAIN what is implied in the above .....

I expect this to happen NO MATTER WHAT ....
even if gold was on an up trend right now ....

the reason being that you cannot deflate ....

>>>>>>>>>>>>>>>>>>>>
But, and this is critical, the problems with the U.S. twin deficits continues, and the only way out of this stagflation mess is for the Treasury/Fed to reflate, which is the same solution that central bankers took in the mid-70’s (the last time stagflation existed).

And we all by now recall what happened to gold at that point. It traded wildly both up and down, but went on to set a record high that was close to $800. In inflation-adjusted terms, a comparable gold price in the next Bull cycle would be much higher than any gold price I have forecasted here.
>>>>>>>>>>>>>>>>>>>>

John
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