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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 671.910.0%Nov 14 4:00 PM EST
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To: Machaon who wrote (49472)5/1/2013 10:10:20 AM
From: Kirk ©  Read Replies (1) of 218833
 
Thanks for the kind words. They are much appreciated.
If one looks at the price of gold and/or silver after the recent pull back, it looks like a good buying opportunity.
Only if we get inflation rather than deflation. I doubt the Fed would be stealing wealth from savers at unprecedented rates if they were not terrified a deflation spiral was very possible.

Don't forget housing. Rents are soaring. Infrastructures are busted and streets near me are at gridlock as they "infill" with lower cost, super high density housing that STEALS wealth from local residents by destroying quality of life via gridlock, over crowded schools and lack of views due to the tall buildings replacing single story structures for those who bribe politicians for zoning changes. We fight like mad more building which will keep prices high... so I expect "rental equivalent housing" component of CPI to start soaring soon.... not sure how they will fudge it but I expect them to wave the magic wand like they do for employment.

Check out this graph Medium Single-Family Home Prices in Ounces of Gold
It sure looks like a major bottom with a trend change in home prices when using gold.

Also, our water bills are soaring. I looked at how CPI is calculated and water, garbage and sewage is about 1% of the basket of goods. It is very expensive to live in CA, especially Los Altos in the Silicon Valley... my water bill now is running close to $1000 a year and it is expected to go up. Add in garbage and sewage and the total is probably something like 5% of the average take home pay in the US... so unless people are spending more than they make... inflation will surge again when these higher costs hit others. I believe the costs are surging for two reasons... to pay the pensions for the workers and to repair our crumbling sewer and water infrastructure. So, bottom line, there is a TON of inflation due to hit from pension liabilities and infrastructure repairs we can't avoid...
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