biggest gold price jump will be in 2003-2006 middle innings
but silver will steal the entire show by then, all in time
as a worldwide silver default occurs
gold will fight the geopolitical heavy lifting battles
then silver will leave earth's orbit
both are widely growing in investment demand, which is the missing link in the press/media now
on a technical chart note...
gold has begun a longterm bull move
but the silver/gold ratio has also bottomed out
I believe it has completed a double bottom here
so both gold and the silver/gold ratio will rise from here
in the last Kondratieff Winter (1930), the world monetary standard died
that was Gold
now the world monetary standard is the USDollar
US$ is 100-times weaker than Gold was in 1930
when the real estate bubble begins to deflate, several things will likely occur
- Recession will gather speed, as car sector joins the decline
--- (maybe car sector decline will lead housing decline)
- GreenScrotum will be widely vilified
- Federal Reserve will be called into extreme scrutiny
- Dollar decline will accelerate into 2nd, 3rd, 4th downlegs
- Federal deficits will run past $1 trillion annually
- and the biggee...
THE USDOLLAR WILL EVENTUALLY BECOME GOLD-BACKED IN A PARTIAL COVER CLAUSE
this will require the USGovt to purchase gold and gold mines
it is unclear to me what their methods will be
but it is clear to me that they will not be throwing their weight around
why?
because of our debt levels
because debts dictate the dollar's valuation visavis other currencies
the run from $6 trillion to $7 trillion will be quick
the run from $7T to $8T will be even quicker
I want a front-row seat for the explosions when Keynesian Monetarist policy is completely utterly totally discredited
the reflection on the dollar and gold will be studied in history and economics books for decades
just like the Great Depression
has anyone noticed how events behind the Great Depression has continually be rewritten, even in the last two years ???
Krugman has fallen from my "Friends of The Court" status
he believes the Great Depression occurred because of NOT ENOUGH PROTECTED CAPITALISM, whereas now we have adequate safety nets, derivative risk dissipation, and govt'al participation, with huge liquidity averting collapse
I honestly believe we are in for something worse than the 1930 Depression
with one essential difference
it will be more like Japan's 12-yr recession stagnation, marked by 50% decline in real estate
if we press too hard, we will get instead more like Argentina's bank failure and economic collapse
it will become that dangerous!!!
I dont bother to blame Clinton & Rubin anymore
this is a grand collusion game with too many participants
Democrats raided the treasury for the poor and lazy and stupid
Republicans raided the treasury for the wealthy and corrupt and elite
end result is that our currency and federal balance sheet is destroyed
call me extreme
just sit back and watch it unfold
many might be fooled by a slight revival in first half 2003
but just like in Japan, all Keynesian Monetary response failed
and economists dont even attempt to explain why
/ jim |
