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

To: westpacific who wrote (46903)	12/9/2005 12:53:13 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 110194

You'd be better off not being a "gold bug". If you want to confuse yourself then worry about what fundamentals make gold move.

To: westpacific who wrote (46903)	12/9/2005 1:51:39 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Deflation hates gold? Point blank you are wrong. Mish

To: westpacific who wrote (46903)	12/9/2005 3:05:52 PM
From: kris b	Respond to of 110194

----"FYI great discussion on this thread, one of the best and keep it coming" I agree with you 100%.The guys and gals over here are VERY good. "Deflation HATES gold." You got it reversed. It is gold that HATES deflation. In a true deflationary winter everything is going to lose value against cash, including gold. Imagine that in a credit revulsion we go back to CURRENCY in circulation only ( about 600 B ). No CREDIT, it evaporates overnight, period. CASH ONLY. What will happen to $40 Trillion ( consumer, government, corporations ) of outstanding debt when it gets liquidated. How much will all asset classes go down? Would you run to buy gold when you can't afford roof over your head and food on the table? You might say that economy can't function on CASH alone. Sure it can. We had cash only in Poland and the rest of the communist countries for 45 years.