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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: SOROS who wrote (52252)5/29/2002 10:29:58 AM
From: Jim Willie CB  Read Replies (2) | Respond to of 65232
 
1st cousin? JPMorgan was Enron's mentor

gold wins in every potential scenario now facing GreenSpasm
if he tightens, economy and stocks fail, and gold is seen as a haven for massive deflation

if he eases further, then the US economy marches down Japan Boulevard, with an extreme grip of deflationary destruction, where the only good investments will be bonds, but recovery will be impossible almost ever, since the banking system will be decimated (just like Japan)

if he does nothing, then we languish in stagflation, and nothing works except gold, as energy inflation and commodity inflation are the paths of least resistance for the massive monetary expansion (money supply rise)

if he reflates with even more heavy money supply increases, then inflation returns in a year in the goods & cervixes economy, but also in spades in the commodity sectors, with gold shining most brightly as an inflation hedge

gold wins in all scenarios because we are at the end of the road in paper financial assets: stocks, bonds, currency, debt issues

/ jim