Tony Daltorio

Extraordinary Popular Delusions and the Madness of Crowds

But you are ignoring that when those bubbles collapsed, the monetary system was based on gold. Not based on a fiat currency like the dollar. Never in history, has a fiat currency gone up in value (deflation) over a long period of time. This time will be no exception.


On Oct 14 02:49 PM Jasper M wrote:

> While Mackay's book is indeed a timely title to conjure with, I would
> remind the author that the collapse of every one of the manias he
> lists was DEflationary - mass removal of credit, and therefor money
> supply, from the system, by market forces, usually in Spite of the
> wishes of those claiming to manage such things.

The Case for Dumping Dollars, Buying Gold

You must be blind - there is massive inflation occurring right now - it is asset inflation, the most dangerous type of inflation.

It is occurring in the US stock and Treasury markets which are both trading at bubble-like valuations right now. When these bubbles burst, you will wish you owned even a tiny bit of gold (which is not in a bubble).


On Oct 08 11:19 PM sethmcs wrote:

> Being the contrarian that I am I think you should sell gold and collect
> dollars. Why? Inflation is too low. The dollar could rally. Most
> people assume that the fed intervention and expanding balance sheet
> will produce inflation. That is only true if the money hits the real
> economy. So far the money is bank entries on the books. Money is
> tight and with high employment the enonomy has too much slack. Gold
> is definiately in a bubble. The only rational reason for gold to
> be this high is China is stock piling it. Other than that what you
> have is fools expecting greater fools to pay more. Thanks for the
> opportunity for me to write something disagreeable.