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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 399.01+0.1%4:00 PM EST

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To: Seeker of Truth who wrote (5206)4/3/2006 3:02:01 AM
From: energyplay  Read Replies (2) of 218605
 
I will disagree with the "autumn leaves" view. I expect, in 12 years, the USD might be worth about 1/4 or 1/3 what it is today, April 2006. I expect gold might be worth somewhat more in absolute terms, maybe 20-50% more.

I think the range of future value would be from 50% of current value to about 15%.

This is a long way from worthless, but a nice long term trade if short the USD while long something with low volitility.

A 20% drop in the value of the USD today would likely balance the merchandise trade defict, except for oil. The return on overseas investments would go positive.

Increased inflation will increase federal government revenues, dropping the Federal defict from 420 Billion to around 150-100 billion. Then, either the end of the Iraq war or about 4 years of economic growth at 2.5% would bring the federal defict under 50 billion.
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