Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (507)	12/8/2009 9:05:42 AM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 621

The question is will Americans vote to repudiate their debts and go the way of Zimbabwe and Argentina? Given the political norm of bankruptcy and a fresh start, bailing out of Wall Street and other debt-busting processes, there's a good chance of it, which is why the frighteners are on holders of US$ debt and promissory notes. Debtors tend to the dead-beat side of town. Or will they be fine, upstanding citizens, honouring their promises? Globally, there is the looming soft bigotry of low expectations. Mqurice

To: JF Quinnelly who wrote (507)	12/8/2009 2:23:23 PM
From: Real Man	Read Replies (1) \| Respond to of 621

The third stage of the gold bull is always a bubble. It comes when people start to hoard it. While I agree, gold is quite dangerous, the bubble can last for years and gold could easily go to 5000 and above. The demand structure of the gold market certainly indicates a very strong hoarding component, which characterizes a stage when gold ceases to be a commodity and becomes an asset. It has a dual role. It's usually a process, not an event, so predicting a backward transition from gold being an asset to gold being a commodity is a difficult exercise. Gold also has sharp drops during its mania stage, like the one it's in now.