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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Cogito Ergo Sum who wrote (11935)2/18/2009 1:16:23 AM
From: Hawkmoon  Read Replies (1) of 33421
 
Looks blatantly like loss of confidence in the system buying.. as opposed to inflation hedge..

Think it might just be the result of the same kind of manipulations that have taken place in other commodities?

I mean.. there's a ton of cash sitting on the sidelines looking for something to do. Cash isn't paying interest and the S&P isn't looking to provide any earnings growth for at least 1-2 years (if not longer). Real Estate is collapsing because no one has the credit to borrow, or they fear buying a depreciating asset.

None of this sounds like a Gold Bug's wet dream (ie: hyperinflation), yet it's still happening.

Why didn't gold surge when the Japanese Recession caught hold? All we've seen is Japan's government deficit spending to the point where their GDP to National debt is the highest of any developed country. Yet, they constantly fight to prevent the the Yen from strengthening.

Hawk
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