Gilbert A...

Gold: The Only Remaining Bubble?

Is Gold an hedge agains inflation ? I so, why gold is up then, since there is no inflation, we are even in a deflation phase.

In noway there is inflation right now !!!

Stop being contrarian stating there is some :

Trust officials from stats bureaus, Trust your officials they know best,

There is no inflation now, nor in sight.

Proof 1: oil is down, crude is down, but the pump remains the same.
And Opep will cut production.

Proof 2 : Tides still makes 34 washes, cost the same. But the bottle is
twice less than it was. Javel water, the jug is smaller, and it is
not because of my lens.

Proof 3: My pasta pack is 2 twice the lastyear price, and the pack is 25
% less.

Proof 4: meat price are declining; they will eliminate beast to keep the
price up. My 10 lb. potato bag cost the price of a 20 lb.

Proof 5: DO some grocery shopping and compare with last year price.

Proof 6 : 42 '' Plasma tv set are cheaper now. Iwho buys tv each week,
and like any other electronics, price are falling as new tech
comes in the market.

I do suggest that M. Paulson et al. know what they are talking about when
they make satement about their non-inflation. But I don't think we have the same concept.

I don't mind that Bentley's new model is cheaper than the last one.

So I Expect gold to hold and rise. And I hope it, because what else's left ?

12 Reasons to Short Gold

On Feb 11 06:11 PM Machiavelli999 wrote:

> I think people on this site need to learn the definition of inflation.
> Inflation is not simply too much money. Its too much money chasing
> too few goods. Even if there is too much money out there right now,
> its not chasing anything.

I must agree on the definition, but desagree on the evaluation.

When Treasury issues bonds and the sole buyer is your central bank. Mainstream media might say, it's no big deal; they were bought anyway.

The message sent and received is quite different when you are already an owner of public debt, and your only potential buyer is the debtor himself !!!!

What the public debt is worthing in such case ? It's at the good will of the debtor. Since he is the sole potential buyer.

No bond holders will want to be left with the bag. He will sell it quick, and he will receive money for it. Monney that will be dumpt promtly since a dollar bill, is still a debt initiated by the central bank realted to the Treasury.

Monney will have too chase something.

The only way to calm a public debtholder who wants to sell, is to give him a better yeld, or else......your economy collapse......You gonna get so much of greenback returning home, while they worth still someting.

Then you raise interest rate in order to stop the downfall of the currency.

The treasury had somewhat an easy ride to this point.

Because, tons of billions of debt at zero percent interest was easy to handle, but it would otherwise at 5, 6, 10, 12, 15 %.

With deficits, wars, service to the population, there is one thing that won't and must not be left asside; the interest over the debt.

Default on interest and the game is over.

It is not obvious, but saying that actually monney is not chasing anything.
I disagree; money is chasing money, and since the hunt is on, monney seeks shelter.

That's why i won't sell my call on GLD.

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