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


To: John Vosilla who wrote (91314)2/5/2008 10:15:55 PM
From: THE ANT  Read Replies (1) | Respond to of 110194
 
Bond yields are not bad if they are seeing deflation.Bonds will go down when interest rates can go no lower and the US government nationalizes a portion of the debt.They will have to use non conventional means to get us out of this one.That is when gold will surge.Total reset of about 30% and then semi control of inflation and lots of new regulations to keep this credit bubble from happening again



To: John Vosilla who wrote (91314)2/6/2008 1:42:27 AM
From: Archie Meeties  Read Replies (2) | Respond to of 110194
 
"Housing, stocks, bonds, most things you needed went up a lot during that time"

You forgot M3, it was going up at 13%+ as well somewhere around there. -g-

I think the goldbug answer to your question will be something like "coordinated central banks selling to suppress the gold price".

At that time price was held down somewhat by forward selling by miners, but mostly because gold, like every other commodity, was in a multi decade long bear market. (which ended right around there).



To: John Vosilla who wrote (91314)2/6/2008 2:57:18 AM
From: glenn_a  Read Replies (1) | Respond to of 110194
 
Hi John.

((Maybe I'm being way too simplistic but to me gold is only a measure of whether we are in a period of disinflation or rising inflationary pressures))

My understanding of gold is it performs well in periods of monetary instability - i.e. periods of extreme inflation/deflation. And it tends to perform poorly in periods of relatively monetary stability - i.e. moderate inflation or disinflation.

g