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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (74807)	12/23/2008 4:11:25 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 108753

I have rarely read a essay which so profoundly misunderstands everything which has been going on. As an example, the author doesn't believe that any of the extra $190 per person of cash in circulation since March has left banks yet. This is rather silly in light of the large number of nimrods who have been posting on web-pages in a panic urging everyone to stock up on paper currency and gold coins. The devaluation of money occurred when massive amounts of debt were created and used to bid up the price of assets such as gold, real estate, oil, commodities and stocks. Ordinarily in a deleveraging these assets would now plunge to lower levels than they had seen in many decades. Home prices would decline by 55% to 95% depending on their location, and gold would perhaps decline to $185 per ounce. But the Fed and other central banks are short-circuiting this correction. Due to the massive amount of money being created by these banks, assets prices will plunge only a small fraction of what they would have otherwise experienced. Holders of cash are being cheated by this. Instead of buying gold at $185, they will need to be content buying gold at perhaps $450. Instead of buying a formerly $1.5 million home for $90k, they will have to content themselves with buying it for $700k. This is what's really occurring. .