message to Voltaire to rebutt by PM his endless optimism:
get ready for two big things in the coming weeks
neither one of which you pay much heed to
the warnings have been earthquakes which you only dance to blindly
1. resumption of USdollar decline, as federal debts rise, trade gap remains wide, war spreads, and stocks stagnate
because the bond bubble is peaking now, soon to turn down
2. failure within niches of the bank industry
e.g. JPMorgan (Brazil hits in winter), FannyMae (potential $1 trillion loss), Mortgage Insurers
the stocks for each banking niche have begun to break down
once more, you are not a student of economics
just a cheerleader who reads only one thing: sentiment
good luck, Jim
he called Gold "bobbleheads" indicating his total lack of knowledge of money, banking, currency, and real returns on interest rates
this man is no student of history
when shorterm Trez rates are near zero for several consecutive months, history has shown WITHOUT EXCEPTION that a gold bull rally is launched
ride it or watch it
real rates on the 3-month TBill has been about zero since Oct2001
in fact, with 3-MO at 1.65% and CPI at 2-3% now, we have negative real rates
gold ignites because after inflation, the 3-MO pays nothing
the only direction for rates is eventually UP UP UP
which translates into large losses for bond creditors,
THUS MOTIVATING A MIGRATION FROM BONDS TO GOLD
THIS IS TOTALLY OVER VOLTAIRE'S HEAD !!!
/ JIM |
