Barry Sotoero

It's a Bull Market in Government Intervention

The Gov. has been making money at a rapid pace since 2001 when the World Trade Center were bombed. They have created debt of 1.3 trillion with the war, Fannie, Freddie, AIG and now another 500 billion or more!! It seems to me the Gov has created another 2 trillion on top of the 10 trillion owed in just a matter of a couple years. I did not notice but if anyone did, what did the dollar do in the wake of this announcement of mass gov. intervention? All my gold mining stockes have been soaring up almost 50% in last week with only a 10% move in gold bullion. It seems that maybe the big ,smart money in the system is fleeing for the safe haven of gold and precious metals. I also see oil rising in the face of a possible depression if this mass amount of liquidity does not work( oil has also been used this year as a hedge against deflation) This market rally was a rally in confidence that these financials that have been killed by short sellers can not be short sold anymore (till the ban is lifted) not because of better fundamentals!!! I still believe the demand for gold and other precious metals is the place to be for the long term during this deflationary time. Now that all this stimuluis is being injected into the economy will be seeing inflation of a magnitude much greater than that of the 70's. It almost has to happen, considering this problem is consideribly more dramatic than that of the 70's. Also what needs to be pointed out is that oil is hovering around 95 dollars a barrel and we certainly are in a recession. What do think the price of oil will be when our economy is back to 3% or 4% growth and we spark the BRIC countries by importing at our normal pace. I will tell you let's try 200 a barrel. Everyone has turned their head away from oil because of this financial turmoil. It is poised to soar again. What will the Gov. do stop commodity trading next. I don't think so. Well there is many other places to make money other than the broad market, but I truly believe we will see gold prices spike much higher that that of the seventies as people flee for a safe haven.