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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (24340)	11/16/2009 6:23:54 PM
From: ayn rand	1 Recommendation Read Replies (1) \| Respond to of 71456

GOLD IS BUSTING OUT ALL OVER ............................ "The gold stocks caught on fire over the past fortnight. They have lagged behind the metal in relative strength, but, since they are more volatile than the metal, bigger profits are the result. For example, gold is well above its early September levels, but the XAU and the HUI have only broken above their corresponding levels just last week." "Yet all I hear from the establishment is the same mantra: “Buy stocks. Stocks must go up. They always have. Don’t buy gold. Gold is a collectable.” Sad, very sad. Beating these people is like taking candy from a baby." "I can tell you what the establishment will do on this cycle of the commodity pendulum. They will scream at their followers not to sell stocks as stocks go down in real terms. They will keep people in the market to the bitter end, and then they will scare them out of stocks right at the bottom. My approach is different. I advise being in commodities (mostly gold) during the upswing of the commodity pendulum and being in stocks (or real estate) during the downswing of the commodity pendulum. I was a gold bug from 1970 to 1980, and I was a stock bug from 1982 to 2007." "Thus, if you do not listen to the establishment, you can escape them by playing the commodity pendulum. Right now I believe that the upswing in commodities started with a double bottom (in the CRB) in 1999 and 2001 and that it will end about 2020 (although catching the exact top will be difficult and will have to wait on signals given at the time). For example, the wild year in gold in 1979 was a signal of the coming top in early 1980. You should also plan for a business enterprise to bring in income in a tough period as employment for older people is very difficult because of the high health insurance costs imposed on employers. For most people, the only solution is to restore the gold standard. " "The idea that the dollar will become worthless in not realistic for the foreseeable future: worth less, perhaps, worthless no. The complete collapse of a currency has only happened 5 times over the past century Germany and Austria in 1923, Hungry in 1944, Yugoslav in 1994 and Zimbabwe in 2008. The paper aristocracy of a country always wants a little more paper money but not too much. In the U.S. in 1967-68, the Fed went too far in easing credit and printing money with the result that a new class of speculators (the New Breed) arose who used extreme leverage to challenge the old establishment. This latter then were able to get the Fed to tighten credit, and this caused the New Breed to collapse into bankruptcy." Howard Katz- November 16th, 2009 shtfplan.com