Get Ready for Inflation and Higher Interest Rates, page 3

reply to post by argentus

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You may be correct. A friend of mine heard a news story yesterday that the US Deficit was worse than Obama knew? This may be a result of the Fed audit? Not sure but to imagine it's worse than we know is unimaginable!!

reply to post by argentus

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What is scary is;

There is something else going on lately that is disturbingly similar to what triggered the 1923 hyperinflation.

In Weimar Germany, money creation in the U.S. is now being undertaken by a privately-owned central bank, the Federal Reserve.

It’s largely being done to settle speculative bets on the books of private banks, without producing anything of value to the economy.

Originally posted by cpdaman
I don't think our creditors are shakey that we will pay our debts.......no country ever pays it's debts off....country's are always in debt

Hi cp. Think of a dollar as 1 share in corporate USA , and QE as float dilution. Now , with 1.75 trillion new dollars in the pipeline for 2009 alone , what will the value of that 1 share be (what will the dollar be trading at) when those future , nominal obligations are "paid off" ? This is why we see large holders of US treasuries currently rolling into shorter-term debt.

Anxiety over future reserve value/purchasing power , was the "nervousness" I was referring to in my previous post...potential default would be a separate issue.

Our man on the ground in Beijing posted an update yesterday....

2nd Full Day In China Approaches

I assure you of the serious nature of China’s concern over the building pressures on the US dollar. It is not something they want or take any pleasure in.

Full Text

China: Weak dollar...no bueno! (currency reserves/exports).

Originally posted by cpdaman
with retail demand low for GOLD Obe 1 .....i don't see gold going to the "moon" without some sort of offical one time devaluation against gold or even IMF SDR's

Respectfully , I'm not sure what you mean by "to the moon" cp. TDM is one of those pumpy , overly enthusiastic sentiment expressions that I avoid , for that very reason...it doesn't really say anything

Does TDM mean a break above $1000 ? If so , I'm curious if you have you reversed your position since starting: Global Meltdown » GOLD to 1000 (again) soon , about 7wks ago.

Originally posted by cpdaman
oil up over 65 gold up to 973.............gee so long as people are smoking green shoots.......the dollar will temporarily fall and gold and oil could rise by next month to 1100 and 85-90

Well , the green shoots are wilting and Uncle Buck is still in trouble.

Thankfully most people aren't trading Gold , or they'd be wearing a neck-brace on their way to the poor-house. Folks seem to expect the moves to be consistently upwards & swift...not gunna happen. Bull markets by nature , will buck-off as many investors/traders as possible , that's how the bull feeds. For this reason , few that began the journey will arrive at the destination. Not many have the conviction , nor the stomach to absorb 25% corrections. How many investors still holding , buying the dips since 2001 ? How many weak-handed retailer's have already "priced-out"...cursing the day nutted-up & sold ?

Gold vs Dollar is a high stakes chess game...it ain't checkers. To complicate matters , official sector manipulation makes it 3 dimensional

I've been trading the miners since 2002...began moving a substantial % of my liquid net worth into physical bullion 2003.

I'm still here

Both technically & fundamentally , I've never seen a stronger set-up.

Works for me...but I recognize that a large allocation to PM's is not appropriate for every portfolio...or even necessarily sane.

Patience if you're long.


GL


Get right and sit tight - Jesse Livermore

reply to post by OBE1

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I'd prefer physical gold over gold stock. It's like a heavy awkward parachute but comes in hany when we need it.

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