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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (2944)	12/6/2003 6:16:03 PM
From: philv	Read Replies (1) \| Respond to of 110194

The positions between the two extremes, that is the old Inflation/Deflation argument and variations thereof seem to be hardening lately. The many dire warnings of Gold and gold equities being over-priced on the one hand and predictions of much higher gold price on the other. Some people point out the extreme danger of collapse of the equity and capital markets and the resultant deflation, while others point out that inflation already exists and more is coming down the pike. They point to gold and commodities as evidence of rising and continuing inflation. So, you place your bets on what action if any the Fed and other C.B.s will initiate and its effects on the dollar and gold. But even here the picture is unclear as the C.B.s may not be in a position to do what they want, rather they may be forced into positions. For example, the U.S. Fed may wish to hold interest rates low, but may be forced to raise them instead inorder to defend the dollar if it declines too far or too steeply. The navigating in these murky waters is getting more and more dangerous. I sometimes wonder if anyone is in charge, if anyone knows what is going on and where it will all end. This great thread and its posters is helping to probe the possibilities and hopefully to shine a light to a safe harbor. If I can predict one thing, that would be that debt is not about to diminish in the near future.