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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: ogi who wrote (12522)	6/2/2006 1:36:29 AM
From: regli	Read Replies (1) \| Respond to of 78416

Good to hear from you, Ogi. I was hoping that the Sprott update would be of interest as it provides further legitimacy to GUY though at this point of the company’s evolution it might not be as needed anymore. As to sentiment, I believe that the general public is only entering the recognition phase of economic troubles on the horizon. The issues this time are much more complicated. In 1996, imbalances and deficits were tame compared to now and the biggest worries on the horizon was a simple to comprehend Y2K issue, the after effects of NAFTA and a Republican congress in a budgetary war with a popular democratic president. Here, we are at a point where the majority is still in denial that the housing bubble is in the process of popping. The latest headlines that house prices YoY increased by 10% leaves them with the illusion of the housing ATM. The fact that the last quarter was horrible was only to be found in the details. But who looks at those? Few understand the possible impact of a current account deficit of 800 billion dollars and rising. Where will those 2 to 3 billion dollars come from to pay for it on a daily basis? How many times have you heard this mentioned in the popular media? Extremely misleading budget deficits where wars lasting many years are still off budget items and therefore not included in the official budget figures, are not something the average person is cognizant of. How many people actually have heard that you need to measure the deficit by the national debt to obtain a more realistic picture? I'd say less than 1%. The fact that the U.S. has lost its long standing reputation as a country espousing justice and freedom has been lost if not forever at least for decades is starting to dawn on the public. That the byproduct of this is a loss of economic influence and therefore economic power and strength is not recognized by most domestically and by not that many even abroad. All of this is just to say that until some of the effects of what happened in the last few years actually manifest themselves in easily recognizable fashion, the PM bull will be in stealth mode (supported by the insightful or "paranoid" few). However, this recognition could come very quickly. Sentiment is a fickle notion and with the carry trade on life support we might see a different economic and therefore political landscape pretty soon. I expect once general negativism takes hold that the gold and silver bull will snort like none of us have seen before not even during the 70s.