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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (69793)	6/26/2008 3:44:48 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

Observing that when greedy, self-serving, fiat wastrels get loose with a printing press, gold goes sky high as measured by said fiat money, is like observing the sky is blue. Observing that governments are fiat kleptocratic wastrels is like observing that there are thunderstorms, tornadoes and hurricanes and one had best be well clear when the storm forms. True, but trite. Anyone who isn't well aware of that is a financial relativity theory naif. Unfortunately, the storms are all-encompassing so heading for the hills isn't a simple matter. TJ's "hills" are submarine - gold stashes where scuba gear is needed to recover them, collecting them en route to escape. But TJ joins with the idea of gold as becoming the one true currency again, which it won't be. Plenty of people are treating it like that already, but it will be a passing fad. If the US$, yen, euro and others race to the bottom, imploding beyond the event horizon into a financial relativity theory black hole [which they might already be within], then the Zimbabwe solution and Argentinian outcome are likely to be experienced, world-wide. It's always fun to panic, but doomsters have always been predicting the end of the world is nigh. Little boys have always cried wolf. Chicken Little always has the sky falling. The USA, like Japan 20 years ago, has built up quite a head of steam in debtly borrow and hope and those chickens are coming home to roost. Japan had a very large financial externality to smooth their path back to balance. The USA is so big that the amount of externality is far less, meaning it could get much more icky. Today, GM and a lot more besides were re-rated downwards. Mqurice