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

To: Real Man who wrote (31878)	11/9/2010 2:28:22 PM
From: carranza2	2 Recommendations Read Replies (2) \| Respond to of 71417

Have you read Summers's "The Gibson Paradox and the Gold Standard"? I am maths challenged so there is stuff there I don't get, but in essence he concluded [back when he was a young pup and mostly still a scholar] that gold price is related to real interest rates, and that the relationship seems to persist even in the absence of a gold standard. His work suggests that low real rates are bullish for gold. We have negative real rates at present, specially since inflation is so abysmally measured, so if this hypothesis is true, gold should do very well. It may well account for a lot of gold's recent rise. With interest rates unlikely to tick up anytime soon, the prospects for gold seem very good in the short to mid-term. Kinda fits in with Jesse's work on MZM, which is also ticking up. And I guess will tick up a lot more after QE2 is implemented. What do you think?