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

To: TobagoJack who wrote (41625)	10/21/2008 8:05:03 PM
From: carranza2	1 Recommendation Read Replies (1) \| Respond to of 220343

First, we must rid ourselves of the notion that dollars are being printed with abandon. The MZM chart and others simply do not reflect that such is the case. The price of gold being positively correlated to MZM growth means gold may very well go down. Scratch: will go down for MZM is absolutely brutal in the accuracy of its predictive power with respect to gold. Second, the bailouts are being funded with Treasury debt and lots of it. Ergo, the borrowing power of the US and soundness of the debt is in question. Bonds will have to offer higher rates. Rogers and Faber are bang-on, interest rates will absolutely, positively rise. We are seeing this already in the US with rising mortgage rates. What to do? Short the long bond via TBT which shorts T bonds of over 20 year maturity with 2x vigorish. Metric: Lehman's [remember them?] 20+ treasury bond index. I'm keeping my gold intact for there is no doubt some sort of inflationary MZM-raising stimulus package will be enacted before W leaves office. Bernanke is clamoring for one as we speak.