ozzy43

The Strange Case of Dr. GLD & Mr. Bullion

"Those who buy physical gold ... buy gold for religious reasons (they are gold worshipers). "

Classic straw man assertion. Most people I know who buy physical gold - and I know quite a few - do so as a long term insurance plan because they have learned the lessons of history when it comes to fiat currency and inflation. Hardly religious. In fact, it is much more indicative of magical thinking to place your faith in technical analysis based on a measly few decades than to draw conclusions based on an analysis of thousands of years of human history.

The 'real world' with which we are faced is unlike anything we have faced before, which means it is entirely plausible that we are moving into a new paradigm, in which case, the fundamental assumptions of technical analysis become invalid.

It is not proven, but certainly plausible that those investing in physical gold are the ones living in the 'really' real world, and posters like the one who posted this simple minded claptrap are among the deluded.

As to credit crises being 'disinflationary' [sic], while there are certainly deflationary *components*, this does not mean that the *net* effects of the current credit crisis - including Fed actions - will be so. Especially once you consider the $60T+ in unfunded liabilities due to governmental obligations over the next two decades. That money will have to come from somewhere and anyone with a marginal knowledge of history can tell you exactly what is going to happen. Because it is what has happened in every single case across 1000 years. Feel free to 'believe' we are somehow special, and that it can't happen here, but be aware that this is nothing more than a demonstration of historical ignorance and magical thinking.

That is, if you think we are in a long term deflationary trend, you really need to put your faith aside for a moment and study history. It tells a different tale.

Start here:

www.shadowstats.com/ar...