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

To: heinz44 who wrote (38516)	4/18/2007 4:30:09 PM
From: loantech	Read Replies (1) \| Respond to of 78409

The top callers?

To: heinz44 who wrote (38516)	4/26/2007 6:59:24 AM
From: siempre33	Respond to of 78409

Jim Sinclair....Today's Dow at 13,000 insures gold at $1650. Today's action in the market is best understood in terms of Memoirs of Extraordinary Popular Delusions, and the Madness of the Crowd by Charles Mackay. To understand what is behind today's equity market, dollar level and gold price you need go no further than the presentations made by former Fed Chairman Allen Greenspan. He made his point loud and clear. If you can adjust the perspective of business decision makers concerning the future of business then you can control that future. There is no better way to convince business decision makers of a bright future than doing anything necessary to make the equity market shine. In order to make the equity markets shine, massive injections of liquidity, which is the grease of the wheels of this market, need to be provided liberally. The downside of this approach is that at each point of required stimulation it takes even more liquidity to make it happen. The equity market is the addict and the crack cocaine is the central bank provided liquidity. The rub is that when international liquidity is created, draining that liquidity is either impossible or impractical. This means today's Dow at 13,000 insures gold at $1650. The monster of liquidity will go on hunting markets until every market touched so far has risen into the rarified air of unprecedented price levels. I am sorry to tell you that this type of thinking lead to the Weimar Republic collapse, yet in the collapse its equity market due to hyperinflation went to unprecedented highs. The currency of the Weimar Republic went as close to a zero value as can be attained, yet the Weimar equity market went to infinity. Take no joy in the "popular delusion" that the equity market is predicting anything but the US dollar at .72 then .56 followed by who knows. You will argue that the Weimar experience was to devalue currency in order to write off war reparations. To this I would say granted, but now to artificially bull an equity market to keep tax revenues high so war can be waged and prosperity provided is using the same mechanism, therefore expect the same, not different, results. jsmineset.com