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

To: Raymond Duray who wrote (9508)	3/5/2004 5:51:36 PM
From: TH	Read Replies (1) \| Respond to of 110194

Raymond Duray, I am in strong agreement that we have inflation, and certainly it is visible in some consumer pricing (insurance could be one to add to your list). And I 100% agree that our government manipulates data to hide this. Without getting too far off base, what I am really trying to determine is this. What does gold do if we go right into a deflation, and if it declines, at what point does gold reverse and reflect value (if ever)? There are several reasons this is so unclear to me. First is that the price of gold was fixed during the last depression, so I consider all data from 33-71 to be of little or no value. Second is that I have some basic difficulties with the basic concept of deflation and the value of gold. I'm reading more on this, but my first (and only so far) conclusion is that any deflation that reduces the value of gold must be a global deflation, or that the currency of dollars must no longer be the standard by which gold is measured. It would appear to me the if only the USA has a major deflation, then gold would still be at X in Euros or whatever. Many would argue that deflation in USA can only equal deflation in the world, and that is probably true; at least for a period of time. Thanks for your response. TH