They were mutually reinforcing on the way up and will unwind together in another mutually reinforcing way, some times one leading, and other times one following:)
In all of this, the honesty of gold becomes key, as folks cannot use barrels of petroleum as wealth store. If I were the FED, I would be nervous. Oops, they are, lowering interest rate again and again, lowering the value of holding cash, not realizing that they are then forcing people to choose stocks or specie.
Not smart to confuse people, as a confused mind is a mind that will say "no more, I am confused and scared, give me my wealth store".
Well, in any case, they might say that, and we might appear terribly wise later on:)
Chugs, Jay |
