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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (100943)	2/3/2009 8:21:26 PM
From: Hawkmoon	1 Recommendation Respond to of 110194

Very interesting article, especially the insight on what's happening in China and Singapore!! I can see the argument where gold rises based upon lack of yield in cash assets. But I'm not seeing inflation until velocity within the money supply equation is restored and it doesn't appear to be coming anytime soon, at least until we see a recovery in the financial surety and insurance markets (which are imperative to restoring lender confidence). We also have the pernicious problem of deflating collateral that makes banks hesitant to lend. But most of all, we need to see the amount of debt defaults and foreclosures level off as debt default equates to monetary destruction, with equals more deflationary pressure. Furthermore, let even ONE country attempt to confiscate or control the trading of gold in their markets and the "fear factor" for those holding gold will spark a huge rally in currencies (and maybe bullets and beans.. ;0) Hawk