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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: michaelrunge who wrote (26503)2/17/2005 2:42:02 PM
From: Jim Willie CB  Read Replies (1) of 110194
 
euro and gold will both be stores of value
first euro, then gold

you overlook the malinvestment of scads of USDollars
like consumer debt
like mortgages for overpriced housing
like central bank USTBond support (overhang)
like industrial commodities (metals, energy) which serves to suppress economic activity

the missing links for gold are
- retail consumer price inflation
- wage growth
- bond market distress
all are missing and will remain missing for a long time

the key is Asian currencys
when the yen breaks out, and yuan peg is removed, then gold will zoom

until then, most new US$ money supply aids the secular deflation underway since 2000
this is the most under-reported stories in the gold community
my Golden Race Car article addressed this issue
"The Golden Race Car Struggles"
gold-eagle.com

energy will prevail over gold in the near term
"Oil to Prevail over Gold"
gold-eagle.com

check out this chart on oil producer VS miners
it has broken out upside in the Head & Shoulder pattern favoring energy
even includes a little hitch in its giddalong in early Feb after breakout
stockcharts.com[w,a]waclyyay[df][pc50][vc60][iLa12,26,9]&pref=G

/ jim
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