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

To: Haim R. Branisteanu who wrote (23633)	12/21/2004 11:26:10 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

<I do think that he US consumer will spend less and this in return will slow several Asian economies which will lower inflation perception and the US trade deficit .... result USD will rise some and the price of gold in USD will drop. 5% seems reasonable> Guess it depends on who lowers interest rates first in that scenario. Excess capacity worldwide to be most likely offset in some areas by stagflation similar to the 70's in tangible assets. Looking at it another way gold should track over a period of several decades the growth in broad money supply, Dow Jones avg, rising housing values, and higher oil prices. At its highs in the past the price of gold per ounce has equaled the Dow Jones Industrial Avg. Perhaps they meet again sometime in the next decade.