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

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To: UncleBigs who wrote (48994)1/7/2006 3:26:33 PM
From: kris b  Read Replies (1) of 110194
 
"While I'm a holder of physical gold and silver, I won't be a believer that we're in for big price gains until I see gold/silver depart from everything else and continue moving higher in the face of credit contraction"

I don't see either moving higher in deflationary contraction. They are both just commodities people love to speculate in.

Look at the last liquidity (money printing by FED) bubble of 1975-1982. It took FED's rate of 15% (I was paying 26% on my business line of credit back then. It took only six months to destroy the housing bubble in my market) to crush the speculators, including gold players. Either FED restricts the liquidity now or we are going to have a much more severe contraction down the road.

BTW.

Is it the FED and the central banks controlling the world's liquidity with the market barely following, or is it the other way around. Pundits claim that it is the latter, but sometimes I have my doubts.
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