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

To: Elroy Jetson who wrote (42214)	11/3/2008 5:44:36 PM
From: TobagoJack	Read Replies (4) \| Respond to of 217620

just in in-tray player 1 whoever gets elected will pursue an inflationary policy of deficit spending. in other words, John McCain will ALSO redistribute wealth, whether he says so or not (deficit spending and inflation are wealth redistribution mechanisms). in short, i don't think it matters much who gets elected. note also, whoever wins will likely be thoroughly despised when his term ends, as he will preside over one of the biggest economic downturns in memory. new blog: acting-man.com player 2 whcih means one should vote for the candidate one likes least! player 1 as i mention in my new blog, they will resort to more and more measures designed to inject money into the economy directly , bypassing the banking system. imo the Fed's balance sheet could easily grow by another 1000% within a year or less. however, there is a possibility that the central banks will simply be overwhelmed by the speed of the deflationary crash. why we should not fear, but welcome deflation: mises.org player 3 Chart of GDP, M3, Base and Federal debt - 1920-1940... for what its worth as a possible rhyme from history. nowandfutures.com player 4 seekingalpha.com player 5 Deflation bears down on gold... Gold Set for 2-Year Low as Deflation Trumps Inflation (Update2) By Pham-Duy Nguyen Nov. 3 (Bloomberg) -- Gold, the metal that rallied during every U.S. recession in the past three decades, may drop to a two-year low as the threat of deflation curbs bullion's appeal. The number of gold futures held in New York plunged 48 percent since its Jan. 15 peak, according to data compiled by Bloomberg. Prices fell 17 percent last month to $724.55 an ounce in London. The metal may drop to $600 by yearend for the first time since 2006, said Joel Crane, a Deutsche Bank AG strategist in New York. While gold rose since 2000 as the world economy expanded and the dollar weakened for five of the past six years, the Reuters/Jefferies CRB Index of 19 commodities lost 43 percent since reaching its peak in July as the seizure in credit markets caused economies around the world to slow and the U.S. to contract 0.3 percent in the third quarter. Rather than providing safety for investors, gold declined almost 31 percent since reaching a record $1,033.90 an ounce in New York on March 17. ``Gold is not considered a safe haven because investors are viewing it as part of the commodity class,'' Crane said in an interview. ``Commodity is a bad word right now. Through this whole credit crisis mess, cash has been king.'' Deutsche Bank expects gold, down 12 percent this year in London, to average $861 in 2008 and $750 next year. UBS AG last week lowered its 2009 forecast to $700 from $825. Gold for immediate delivery averaged $886.59 this year. End of Rally Gold rose about 220 percent this decade through June as expanding economies, especially in emerging markets, spurred demand for commodities and increased risks of inflation. While the CRB index rose more than 125 percent during that period, the Standard & Poor's 500 Index fell 13 percent and the U.S. Dollar Index, which measures the currency against six of its biggest trading partners, weakened 29 percent. Demand for gold waned amid speculation that U.S. government efforts to rescue the banking system and the Federal Reserve's decision to lower its target interest rate for overnight loans between banks to a 50-year low of 1 percent will help the world's biggest economy recover faster than Europe. The combination of falling commodities and rising demand for dollar-based assets ended gold's bull market. Dennis Gartman, an economist and editor of the Suffolk, Virginia-based Gartman Letter, exited all his gold positions, except for coins he purchased at the end of September. ``I feared the whole financial system was coming to a halt, and you need a little gold in that case,'' he said. ``I doubt it will anymore. But it sure felt like it a month ago. There's no value in gold right now.''