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

To: Claude Cormier who wrote (30703)	4/15/2005 10:18:05 PM
From: Taikun	Read Replies (2) \| Respond to of 110194

Claude, I don't profess to know, but if gold is managed couldn't they continue this for awhile longer? I still have my physical gold and some juniors, but I sold my paper silver and quite a bit of paper gold. <that fiat papers moves towards zero> In some prior economic downturns, Scandanavian countries still retained the ability to finance business while other nations in the West were experiencing financial systemic failure. I wonder if a basket of Norwegian Kroner, Swiss Franc and Singapore dollars wouldn't be as good, since these are decent currencies, as far as fiat currencies go. I think that two years ago it was very difficult to see how this reflation would pan out, but now that we see the US, with a weak economy, trying to finance multiple wars (anyone betting against Iran in 12 mos?)the picture has become a little clearer. Derivatives allowing credit expansion have run amok and the credit balloon has been blown up as far as possible. I don't quite see how gold fits in here. I actually think Prechter might be right: accumulate notes. If the liquidity bubble pops and the banking system is constrained, notes under the mattress will do well. I friend of a friend is an expat in Argentina running a tourism business (airplane tours) and was just closing on a house purchase so he temporarily took USD30,000 out of his safety deposit box a few years ago. Three days later the banks were shuttered. He lived on that $30,000 but the people around him had an extremely difficult time. Perhaps we should be focussing on banknotes under the mattress? D