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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (7420)	5/18/2008 6:25:53 AM
From: Real Man	Respond to of 71475

Right. My boundary is 1405. New highs are very possible now. Note that the only true chart looks bad - the DOW needs to be priced in gold to access whether this is a bear market or not. The high for the DOW was 43. The recent lows were around 12, a decline of 72% from the top in real terms. This can go to 1 as it did on prior occasions (1980-s). If the DOW keeps setting new highs, then Gold will just have to go to 14,000- 20,000, with all the implications of such a move for true inflation. What good is being in the DOW if it does not buy anything? Sure, DOW bears will be killed in the process. You can call this process paper shuffling as all of it loses real value. This has an effect on the rich as well. 8 years ago the top ten World rich list was all US. Now US is 30% of top ten, and still falling (this was Spring 2007!!!) 1 William Gates III United States 51 56.0 United States 2 Warren Buffett United States 76 52.0 United States 3 Carlos Slim Helu Mexico 67 49.0 Mexico 4 Ingvar Kamprad & family Sweden 80 33.0 Switzerland 5 Lakshmi Mittal India 56 32.0 United Kingdom 6 Sheldon Adelson United States 73 26.5 United States 7 Bernard Arnault France 58 26.0 France 8 Amancio Ortega Spain 71 24.0 Spain 9 Li Ka-shing Hong Kong 78 23.0 Hong Kong 10 David Thomson & family Canada 49 22.0 Canada

To: LTK007 who wrote (7420)	5/18/2008 7:03:53 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

Gold:SPX - a long way to go.... Gold just broke out of 28-year "bear market" this year, and re-tested? Is there such a thing as a gold "bear market" or "bull market"? I believe the answer is NO, if you think of gold as a 5000+ year old currency. The true picture is that of the dollar losing its value. Can you call a country where living standards were cut at least 40% in the past 8 years to be in a bull market? I guess so. However, this is a bull market similar in nature to that in Zimbabwe. I have a hard time calling this a "bull market", even though prices are rising in dollars. If US hyperinflates, expect the dow to reach 1,000,000,000,000, FWIW. A mega - bull this will be.... The economy will then COMPLETELY collapse. bp0.blogger.com