Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: gregor_us who wrote (13081)	5/2/2004 8:31:10 PM
From: Jim Willie CB	Respond to of 110194

the predominant theme factor now is bond-dollar-gold derivatives and futures rule the markets now higher rates lift dollar higher dollar hurts gold nevermind that rates are rising from price inflation which is the traditional reason to hedge with gold just shows the power of financial leverage at work now until the interconnected contracts are unwound, gonna continue given we have $750 billion tied up (3x more than 1994), one can expect this triangle breakdown to continue Sinclair warned that the gold big uplegs would occur when bonds take hits not true not yet anyway he overlooks that secular deflation is still in force the carry trades are aberrant responses to secular deflation / jim

To: gregor_us who wrote (13081)	5/3/2004 2:22:34 AM
From: jimsioi	Respond to of 110194

Should Gold rocket if money supply increases.. Normally we'd say YES, that was the experience back in the late '70s....But it takes buyers for that to happen...Big difference between now and then and why I suspect many of gold bulls will be frustrated by the muted response by Gold to the bullish fundamentals we see for it is that there are many other ways to protect ones assets now than there were back in the late 70's. The Crude market and currency markets and the interest rates casinos were all in their infancy....Now there are full grown vehicles with deep liquidity and track records of performance for asset hedging....replacing the traditional role in many ways that GOLD and SILVER held in the late 70's for speculators and financial hedgers, alike.

To: gregor_us who wrote (13081)	5/3/2004 7:40:11 AM
From: orkrious	Respond to of 110194

This leads me to wonder that a more "rational" reponse, actually, from gold RIGHT NOW would be for gold to ascend immediately to 5, 6, 7, 8, 900 dollars per ounce. There is no question that is what should be happening now. the trigger needed is for the masses to lose confidence in the fed. it's hard to believe no one questions them now, but one day they will. I would think it would happen when the market breaks down, people begin to realize there is no true recovery, and the fed is out of bullets.