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

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To: Jim Willie CB who wrote (26499)2/18/2005 3:05:41 PM
From: John Vosilla  Read Replies (1) of 110194
 
I see oil and gold separated
those who see all commodities running together missed the mark
rising energy prices are economically smothering
they lead to liquidations, bankruptcies, economic distress
for that reason, high oil price goes with secular deflation prevailing, and thus lower gold prices


This sounds more like the staglationary 1970's only worse as negative real interest rates are much greater due to BLS manipulating the figures. The attempt to reflate assets and debase the currency could work to prevent cleansing of much of the debt out there except in the extreme coastal housing bubbles that are as out of control as any mania in the past century. Looks good for gold unless wages and rents do not start a meaningful move up. Perhaps the 10% annualized broadbased CPI figures today are a start.
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