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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Yorikke who wrote (4870)10/16/2001 11:02:21 PM
From: MulhollandDrive  Read Replies (2) of 33421
 
>>Question? With all the money pumped into the economy, with the low interest accelerator on that extra money, why is inflation so low? I would venture to say that the demand side, even in an over stimulated monetary environment, is very very weak. <<

Yorrike...

If you go back, you will see that I have been very much on the side of weakening demand argument. So you'll get no disagreement from me.

I believe that we are headed for a deflationary environment and perfectly willing to admit gold 'may' "hold it's own" in that setting. And again we agree that after a nice run gold may be ready for downturn.

Are you saying that "intrinsic" value will be what holds gold up in a deflationary, contracting economic forecast?

As far as the mambo goes..we can dance if you like, but I'm expressing my own personal viewpoint. I personally do not want to be a holder of a shiny metal that may also be a 'victim' of the weakening demand of a deteriorating economy.

My personal preference is cash over gold. To each his own.

regards,

Mrs. Peel
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