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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (76422)	7/16/2011 6:11:51 PM
From: skinowski	Respond to of 218107

Some years ago people used to talk about the "Big Mac" test for currencies. If you traveled to another country and discovered that you had to pay for a Big Mac double what you paid back home, that was a good sign that the local currency in that country was overvalued, and your home currency probably undervalued, and that in time the trend would be for those values to come closer together. It was said about gold that - historically - an ounce of gold would buy a man a decent suit. These days, an ounce will buy probably a couple, maybe even more, depending where you shop... at any rate, the price is likely to be at the high end of that range. No doubt there is a significant price premium built in because, as Putin so correctly stated, our Fed and our politicians are not acting the way good, upstanding citizens should. How far up the price of gold will go? Who knows. For the moment, we are experiencing a political backlash against infinite printing. If this ends in getting some control over the situation, maybe our currency will stabilize.... If not, then not. So far, today, my USD's will buy fewer Euro's and less gold than they did back in 2007, but still more SnP, more oil, more real estate.