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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (29311)	2/10/2008 4:33:28 PM
From: carranza2	Read Replies (1) \| Respond to of 218922

For the immediate future, you are right that the financial adjustments to defaulting creditors will take place. I'm not convinced that it is TeoTwawki though it's obviously desperate for those who have lost the lot. Warren Buffett thinks there is lots of money sloshing around and so do I, though his sloshes are tsunamis compared with my little ripples. It's not just about financial adjustments some creditors will have to make. The repercussions are everywhere. It is not nearly as simple as you seem to think. If this credit imbroglio were limited to housing, I would not be making the statements I have made. The price of gold is related directly to the increase in the money supply. There is no better positively correlated predictor. The price of gold is telling us that there is too much money sloshing about, and that it is becoming the equivalent of confetti. Like many truths, it is obvious but mostly unrecognized. The other truth, less obvious, is that paper currency always increases. There is never less money, always more. And it will always be worth less in the long run as the printing of money and the easing of credit are the easy near-term way out of financial difficulties. Not the healthiest, but the easiest. There is therefore a structural support for the ever increasing price of gold. This is also prophesied, preordained, certain, inevitable, signed, sealed, and delivered in the fullness of time.