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

To: Hawkmoon who wrote (101448)	2/18/2009 1:15:13 AM
From: pitbull_1_us	Read Replies (1) \| Respond to of 110194

Maybe you should look at the expectations for gold during deflation also.Maybe that will help you..And most people are absolutely aware of the lack of velocity in money flows.At least the people that I know are.

To: Hawkmoon who wrote (101448)	2/18/2009 2:20:38 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 110194

Hawk, i think gold at $1000 per ounce is a bubble - when it happened in the late 70s. adjusting for inflation, though, that equates to something close to $3k. i'll pretty much guarantee you one thing, this situation is much worse than th elate 70s. by orders of magnitude. i think that gold at $250 was a depression in the price of gold, which makes current values look high. having said that, i'm thinking that silver might outperform gold as the tradition gold to silver ratio is out of whack. i just need to find a place where i can my hands on some silver without being reamed in commissions. >>There is about $4 Trillion in money market savings just sitting on the sidelines waiting for a bottom in prices.<< and if that leaves the market (due to a big vote of no confidence in the market) and starts to be spent to avoid printing press inflationary pressures, what happens? where will the money go? i'm convinced they will turn on the spigots and, in their words, err on the do more side as opposed to the do less side. they will monetize the massive debt they are foisting onto the worker class.