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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 (89559)	12/12/2007 9:43:39 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 110194

I pretty much agree with him (on gold shares), but there's also two other things working: 1) Hangover from the NG implosion (ie, terror over higher expenses especially affecting juniors). 2) Simple tax loss selling (weaker performers were relatively weaker in the latest down draft). I agree we're going higher, and soon. DISCLOSURE: Long GDX, MRB, SA, SLW, KGC, GFI calls and lotsa bullion.

To: orkrious who wrote (89559)	12/13/2007 5:41:52 AM
From: Mike Johnston	Respond to of 110194

Again, how much more plain can it be that the Fed will inflate regardless of the inflationary costs? And now other central banks are now joining in the fight as well? Don’t fight the Fed. Simply bet on more inflation… Simply buy more gold, as well as more gold and oil shares Nothing to add , nothing to subtract. It should be printed out and posted on the wall.

To: orkrious who wrote (89559)	12/13/2007 8:41:29 AM
From: yard_man	Respond to of 110194

Call me a wuss -- this sounds like a good theory -- I want to see the application!! <ng> >> The gold shares still seem to trade as if many people are still terrified that the equity market is going to take down their gold miners in another August collapse. However, what they fail to realize, in my view, is that it’s not August. What hit the gold shares in August was fear that the system might seize up and basically there would be no bids for anything, which triggered a rush to liquidate anything and everything in a mad liquidation dash that also happened to include the gold shares. The Fed’s actions (and other Western central banks) have made it more than obvious since then that the central banks are committed to keeping the markets functioning (which I would argue was also obvious even before that, but I’m obviously not “the market”). That doesn’t mean the Fed can solve all the financial and economic problems out there, but they certainly can keep the markets functioning if they want to. And by pumping more money into the system to keep the markets functioning, it creates even more excess liquidity in the system that has nowhere to go. The liquidity doesn’t want to go into the US credit markets or into US stocks because it fears losses in both, and no matter how much liquidity is created, it won’t go there. The liquidity does have to go somewhere though. And at the moment, it continues to pour into the commodity markets and into gold. As we’ve said before, this is analogous to what we saw with the 1998 bailout that led to the tech bubble and the 2000-2002 monetary response to the stock market crash that led to the housing bubble. The Fed is already being forced by the housing bust to run the “printing press”, and even more “printing” is coming (including from other central banks). The result is going to be another bubble, except this time, there’s no bubble to blow that benefits the US economy. That leaves only one outcome: a collapse in the dollar and the fiat dollar-based monetary system, more inflation, and an eventual “bubble of all bubbles” in the likes of gold. <<

To: orkrious who wrote (89559)	12/13/2007 11:35:33 PM
From: Proud Deplorable	Respond to of 110194