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

To: Haim R. Branisteanu who wrote (85619)	8/28/2007 3:59:34 PM
From: bart13	Read Replies (2) \| Respond to of 110194

More so the price of gold seems ominous that selling occurs into any rally - just wonder when will it stop What Most Investors Don't Know About Gold and the U.S. Dollar safehaven.com

To: Haim R. Branisteanu who wrote (85619)	8/28/2007 4:40:07 PM
From: carranza2	Read Replies (1) \| Respond to of 110194

Were are living in interesting times Isn't that ancient Chinese curse the truth? It seems to me that healthy US consumption has been based on a Niagara Falls of credit-driven liquidity. Now that it is being slowly tightened, the repercussions are being felt globally. Excess liquidity cheapens the currency. Always has and always will. Chinese growth has been driven on the back of the genuinely cheap dollar and the falsely strong yuan. But growth is growth, no matter how you get it. The price the Chinese will pay is the depreciation of their reserves and the slowing of internal growth as consumption in US markets slows. In a word, deflation and recession. And that is why I am largely in cash, waiting for the price of blue chip US shares to fall more. Their earnings are increasingly overseas, and this is good. They are very healthy, very productive, cash rich, and getting cheaper by the day.