Bruce Pile's  Instablog

The fractal long range forecast for gold is basically a parabola. A long while back, before gold was anywhere near $1000, David Nichols of the Fractal Gold Report drew this result of his fractal analysis for gold's future: (click to enlarge)


I recently added the note about the resistance level we have since broken through that is smack dab centered on the parabola drawn by the fractal technicians clear back when gold was at $734.50!  This analysis is from pure fractal geometry and physics, which know nothing of idiots in Washington or fools on Wall Street. But they have their parabola too!

I suppose a lot of the debt increase of the 80s can be blamed on Reagan's cold war deficits. But the U.S. won the cold war, and in peace-time, debt could have come back to sensible levels, as the Reform Party of Ross Perot tried to accomplish in the early '90s. But instead, a new war developed, and off we went on another parabola. We were invaded by an army of congressional spendthrifts, credit card carriers, and wiz kids on Wall Street creating and slicing and dicing mortgage debt, and peddling and juggling these deadly missiles to no end. This cold war has, unfortunately, turned unto a shooting war with the first missiles launched in 2008. The debt traitors started their parabola in the early 90s. Gold started its parabola 10 years later in retaliation. Call me crazy, but I think these dueling parabolas could be related.

Disclosures: Long a gob of gold