Ron, a very thoughtful post as usual. But is there any way of ultimately preventing the sort of collapse you alluded to?
I don't picture CB's with horns. But what causes the bust is not the trigger, but the boom. If a gold short position, or LTCM, threatened the world economy, then why not prevent that from happening in the first place, rather than arranging a last minute bailout?
If the stock market collapses , or gold rises precipitously, it will be because of the extreme mis-allocation of capital that precede these events, not Bill Murphy. Perpetuating more of the same will not, in my view, work.
Unlike BM though, I think a low gold price is good for everyone (especially investors like my self).
As for the Euro, let's watch that one together. Either Europe or America or both will come away badly bruised. There isn't room for two world reserve currencies IMO. |
