Louis Paquette

Deflation Now; Inflation's Coming

Gilbert,

I agree regarding the geopolitical situation being potentially very unstable...

See how that oil tanker was taken by pirates a couple days ago. And I agree about Pakistan - very concerning that they have something like - 50 nukes? - and could fall to the taliban any time...what will happen then?

(I wish we could edit these posts...excuss a couple obvious errors above!)

Cheers

Louis

Deflation Now; Inflation's Coming

Gilbert,

"I don't know where gold will be in the next 6 month. 200 or 2000 $."

I know what you mean. On the one hand with all commodities deflating as they are, and looking at a ten year chart, sometimes I wonder if gold can move up.

The thing I am looking at now is this almost unprecedented money supply growth. It's not that I thing gold is going to go up as much as the value of each dollar is going to fall they way the authorities are printing the stuff.

I agree with this Peter Cooper when he writes::

"Money supply out of control
Another banker today showed me a chart of US money supply growth over the past few months, and highlighted a 111% increase. This compared with something like 15% money supply growth in the early 1930s as the US authorities grappled with the Great Depression.

There is an absolute tsunami of money coming into the system. What happens when the supply of something exceeds the demand? The price drops. And that is exactly what is going to happen to the US dollar - the authorities are about to inflate away their debt problem."

Source: seekingalpha.com/artic...

Deflation Now; Inflation's Coming

Guys,

I appreciate the comments and I understand where you are coming from.

I would just like to mention - that this "article" was pulled out of a larger article, and I agree it doen't really offer that much on its own.

The point I am attempting to get around to making - but is omitted here - is that while gold looks lackluster now - with the way the money supply is being goosed (as shown in these charts) - that sooner or later - I am guessing that concerns about Deflation will soon turn into concerns about Inflation, that interest rates are going to have to be raised and that this will have a positive impact on the Gold price. This coincides with a theory Peirre Lassonde is proposing and some others and I agree.

My point is that this may not be a good time to give up on gold.

Cheers,

Louis

Markets Are 'Free Fallin'

At the current pace of decline, in another 8 weeks or so, gold will be trading for zero. I think I'll put in a stinker bid at $1 per ounce and see if I get filled.

Is the 'Commodity Super Cycle' Dead or Alive?

Paul and Shark,

Gold will remain a currency and survive as a storehouse of value as it has done for centuries. If anything - it is the U.S. fiat currency that will not.

IMHO