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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: roguedolphin who wrote (97529)	5/15/2009 8:17:45 AM
From: Think4Yourself	4 Recommendations Read Replies (4) \| Respond to of 116555

OK, I am a bit confused here about the deflation scenario. The government is printing money like mad. Other countries are saying "enough already!". I can see that Treasuries are going to tank because yields will have to rise... a lot. Basically I see the dollar becoming worthless, and it seems inevitable. The prices of real items like food and energy are going to skyrocket in terms of dollars. How can we have deflation in that environment? What am I missing here? It must be something so obvious that hopefully someone here can straighten me out. Can prices go through the roof and the dollar become worthless in a deflationary environment? That's a serious question, not a setup.

To: roguedolphin who wrote (97529)	5/15/2009 10:14:14 AM
From: maxncompany	Read Replies (1) \| Respond to of 116555

I agree we are not in a new bull, how far down we go I don't know, though. Having said that, though, I no longer assign any credibility to Prechter. For years he kept saying gold would fall back to $200. Fine. But as time went by he kept ratcheting up his target where gold would top out (because his previous targets kept getting taken out and going higher) and fall back all the way to $200. After a while it became clear Prachter was allowing his ego to dictate his ever changing gold target where gold would top out and fall back to $200. God forbid he should admit to being wrong, so instead he just keep pushing the turnaround top target ever higher. Having stopped following him, I don't know if he ever published an "I'm wrong about the $200" admission. He may have. And it appears from the article, while he expects gold to fall, I no longer see a projection of $200. But he hung onto that projection for so long, and more importantly, kept changing his top in gold to "fit" his $200 prediction I no longer see him as credible.