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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (32923)	9/28/2008 9:39:02 AM
From: prometheus1976	2 Recommendations Read Replies (2) \| Respond to of 206761

Thank you for the prompt response.. The "2000 gold a product of inflation" i understand. "40 crude feeds inflation"..this part I am unsure I understand.If oil drops to 40$,then a lot more money is available for other items,but will OPEC stomach this decline w/o cutting production? Or is there another take on this?..i am just trying to get a grasp of it,and seeing what i can deduce.. I must ponder the implication that oil increases are deflationary and decreases are inflationary. My Regards to you,P1976

To: da_cheif™ who wrote (32923)	9/28/2008 10:50:54 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 206761

That's correct. most don't understand what it will take to get gold rolling to 2000.

To: da_cheif™ who wrote (32923)	9/29/2008 1:15:36 AM
From: Proud Deplorable	Read Replies (1) \| Respond to of 206761

You're talking about monetary inflation in the first case and price inflation in the second case. Gold will keep rising (USD) as the dollar is devalued by continuing debt financing of wars etc. necessitating the creation of more and more money going forward but oil at 40.00 doesn't cause a need to create more 'money' so I don't see the connection of oil to gold, never did really, and think it was a temporary phenomenon created by futures traders but has no basis in the real world. If low oil prices ever translate into low gasoline prices then I can see the consumer having more money to spend which will create more 'price' inflation (too much money chasing too few goods) in other areas but this won't stop the Fed creating more 'monetary' inflation and gold skyrocketing imo. If consumers really stop spending then this might change but....who really thinks most people in USA and Canada realize that the good ol days may not return and that their over consumption is over? I don't see that attitude changing in this generation short of a total collapse..but hey maybe we ARE at that stage. Whatever happens I see gold (silver)as the only protection. chrismartenson.com