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

To: UncleBigs who wrote (64768)	6/28/2006 5:10:51 PM
From: gregor_us	Read Replies (2) \| Respond to of 110194

The FED caring about Gold Has Traditionally Been a Goldbug Theory. As with most theories of goldbug's it's been way overstated. My own view is that the FED would be nutty to care about such a small, insignificant market, when they've got much, much bigger problems to worry about. I still don't understand or accept this commonly held theme that the FED responded to gold and copper and emerging markets going nuts. In fact, I'm writing an essay right now that says that if Bernanke was indeed responding to those gold and copper moves, then he is like Odysseus repsonding to the sirens. He needed someone to lash him to the mast. In Greek tragedy, this is often where the "tragedy" part begins. This is where Odysseus, thinking he needs to fight gold lets his guard down while chasing gold through the reeds, and then he gets his legs cut off by the Deflationary wolves. I own gold because of the government debt. I think that debt will have to be rescheduled in the future. And, in the near future if we go into recession. The capital flowing into nasdaq dwarfed the gold market. But everyone thinks the FED wants to fight gold They needed to put a cap on speculation. I still don't understand why, but everyone else does so I hope I can figure it out some day. Perhaps what people mean is they needed to respond to the symbolic nature of gold. They needed to attack the symbol? I better brush up on my Semiotics! Best, Gregor