montross515

Will Gold Break Out?

Rigel: M3 is estimated to be increasing at around 14% this year. When Henry Paulson buys a trillion dollars worth of "stuff" from the Too Big to Fail banks, he uses a trillion dollars of real money which he gives these banks for their non-performing paper holdings---like sub-prime mortgage pools, or even prime mortgage pools which are also failing.

Dow Chemical raised all prices 20% four weeks ago and another 25% today: that's a 50% overall increase. Like almost everything else that is real, its price for goods has gone up 50%. Looked at more realistically, the US dollar was just devalued 50% against "things real." Revolutions start from massive price increases....

Will Gold Break Out?

This is simple: the dollar can only go down as long as the USA spends an extra trillion dollars a year from its printing press. As the dollar has to go down the price of gold has to go up. The relationship is not a straight line and the dollars fall is exponential in nature. Consider, Medicare, Social Security, the Pentagon's ability to get what it thinks it needs...People seeing the trend try to get ahead of the curve, hence, gold will go up faster than the dollars dead drop decline.