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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: sixty2nds who wrote (18870)8/3/2011 1:29:43 AM
From: ahhahaRead Replies (1) | Respond to of 24758
 
The only way gold can fall meaningfully is through substantial rise in interest rates. That would require a booming economy. Otherwise, in the current economy with the Demolitionists expanding debt, the ability to service debt is falling. This causes an indirect deflation. It is this indirect deflation that drives gold, now that the POG is sufficient to increase mine supply enough to meet demand. You could look at 1500 as a base level. The reason for this base height lies in the impossibility of Gentile's Keynesian FED to accept a true deflation. One could look at it as though the domestic buying power of the dollar has shrunk. This view is independent of any cumulative +rocGPL.

DM and Gentile have no way but to keep on trying to inflate. Since the system is saturated such attempts only induce further indirect deflation. Why is that? It is We, the People, who must solve the problem by doing business, but neither DM nor Gentle can permit that. Their philosophies of power won't allow it.