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


To: orkrious who wrote (81226)4/27/2007 7:51:07 PM
From: TobagoJack  Read Replies (4) | Respond to of 110194
 
Gold Up Everything Else Down?

In other words, do we have to worry about a housing crash induced consumer spending crumbling that re-introduces the event known as credit crunch, which than craters all assets that had a correlation of precisely 1.00 with money supply, and yet not take gold down with it, and see the rise of the money whose faithlessness ranks well alongside the Zimbabwe Dollar even as one strategic competitor and another Hiroshima Nagasaki nuke trained tactical lapdog lackey continue to fund a trillion dollar military adventure in Mesopotamia that is being undermined by weak kneed politicians who are trying to look good on TV readying to be annointed by another panel of judges to inherit an office in a white house that is increasingly irrelevant in this world?

To put it all differently, in the inevitable coming rush for cash, will the Fed from Jykell Island and the monetary hari kari ninjas from Tokyo fail to provide the necessay liquidity, watch the imperial work of several generations go down the gurgler, or will do as usual, and trash the cash?

Bottom line, will gold be treated as extraordinary cash, and rise, or as ordinary commodity, and fall?

And what ugly unproductive role will the hedge funds with their ultra leveraged and concentration of seriously ruling elite wealth play, either wagering for gold the emperor of cash kings, or betting against the best forgotten and less useful than fertilizer commodity?

I think accumulate gold, the one way bet, but be prepared to hoard more on any and all temporary set backs, because cash is king, gold is emperor, and there is a huge pile of fiat-inflated wealth on the Titanic carry-trade US of A that will be looking for life boats, especially when, not if, Congress, driven by grassroots demand, starts looking for goats to slaughter.

Meaning, will the elite of USA bet with the 2.6 billion masses of China and India alongside the hundreds of billions of dollars beholden to oil-backed Arabia and nuke-supported Russia, or will they put their faith in the democratic compatriots at home, and stay put as the suddenly understanding crowds converge on Capitol Hill?

What do you think?

GUPS - gold, uranium, platinum, silver, the four metals for safer passage across the coming dark interregnum.