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Politics : Welcome to Slider's Dugout

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To: redfrecknj who wrote (4042)12/10/2006 3:36:10 PM
From: SliderOnTheBlack   of 50729
 
re: ["Short Rates above or below the Inflation Rate"]

Redfrecknj, you get a reco for making an excellent
point and for posting an interesting chart. But, that's not
it, because neither the majority of hedge funds, or individual
gold bug investors believe the inflation rate numbers.

They both believe that short rates are still below
the REAL rate of inflation... as do I.

Why then hasn't gold gone on to new highs?

Simply because hedge funds (unlike the individual investor
gold bugs) also feel that the present gold price more than
adequately reflects the real rate of inflation.

Another factor that may come as a shock to the perma-bugs
and the gold-newsletter writers... is that they will NOT
be "re-pricing" gold in "1980-dollars" because
gold in and of itself -- is the pricing mechanism
and the barometer for inflation.

There's an even more important issue that's capping gold.

It's another one of the Big Lies that's been told by the perma-bulls.

....and you'll discover what it is later tonight.

It's the reason why the "straddle trade"
was so predictable and is so profitable.

For gold to go to significant new highs and to hold
those new highs..."it" must change.

It never lies.

It is what separates a secular bull from a speculative bull.



It and it alone, is the truth, the way and the light for Gold.

Without "it"...there will just be more pain.

... more whipsaw's.

... more false breakouts.

... and more broken dreams.

SOTB
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