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

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To: TH who wrote (106667)12/12/2009 6:40:14 PM
From: Skeeter Bug  Read Replies (1) of 110194
 
TH, i think the fall in POG makes perfect sense given the propaganda. the propaganda is two-fold...

1. japan selling bonds will strengthen the dollar as rate will go up - bad for gold.
2. 1.5 increase in retail sales reported indicates real recovery and less chance of collapse.

not sure about #1, but i'm pretty sure #2 is a bust and will eventually be revealed as such. when it does, gold should firm.

when i look at the slv and gld charts, they do look close to a bottom.

i still expect credit crisis II in Q1. that should wack gold hard, too. the good news is the other side of that collapse could put turbo chargers behind the POG as the printing presses will *really* engage full force.

looking at this chart...

one would think debt (and therefore money) would decline.

market-ticker.denninger.net

but that would be deflationary - debt decline is money decline because debt is money and money is debt.

i think we have to have at least one more deflationary scare before the ramp.

anyone interested can jump on board the swarm politics process...

economicedge.blogspot.com
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