Why is gold so weak if dollar is crashing on the down side – it is just a conformation of deflation
Sam Adelton
Apr. 29, 2007

Gold market’s biggest worry is deflation. That is the environment where gold really loses value. The dollar made an all time new low against the Euro. However, the gold is nowhere close to its last year’s top. What can be the reason?

It is just a confirmation of stealth deflation in the economy. The economy is divided between the unproductive rich seating on fat inheritance and those who are working hard to make the both ends meet. In the middle of that the bank are looting the public in the name of loan sharking. The stagflation that started in 1981 is now turned into full-fledged deflation. Federal Reserve is in a state of self-denial. Printing currency and increasing the money supply cannot cure the cancer in the economy that started in 1981. Interestingly the rest of the world is also printing currency and have decided to go for the bungee jump without a perfect protection mechanism.

The gold’s action is very interesting. Many of those who cannot look beyond the closing numbers in the stock market every day are questioning the deflation theory. When I wrote about Mortgage scams in 2005 and imminent real estate collapse, people laughed at it. Look what happened. The real estate mess coupled with lies and scams in mortgage market will take the world economies in deep depression before you can think. When things collapse it happens very fast. That is what gold market is telling – something is wrong. Well that’s a deflation folks.

Mortgage brokers who lied to the public while selling mortgages are looking for safe heavens abroad
Fred Day
Many mortgage brokers who sold mortgages lying to public are scared now. People can take revenge on them. State and Federal regulatory authorities can take action on them as foreclosures and mortgage defaults skyrocket.
READ MORE>>

Why is gold so weak if dollar is crashing on the down side – it is just a conformation of deflation
Sam Adelton
Many of those who cannot look beyond the closing numbers in the stock market every day are questioning the deflation theory. When I wrote about Mortgage scams in 2005 and imminent real estate collapse, people laughed at it. Look what happened.
READ MORE>>

Credit card companies raising rates without notice – what is the effect on the economy, stocks and bonds
Peter Oberois
How high can Dow go? As much as the hedge funds and their billion will take it to. But sooner or later the deflation will take it down where it belongs – far bellow 7000.
READ MORE>>

Can Gold make it to $800?
Peter Oberois
The deflation is not that great for gold. It can create the damp in the gold market. If dollar collapses, however, gold will rise far above $800 an oz.
READ MORE>>

How far can the stock market go based on artificial liquidity in the hands of the hedge funds?
Sam Adelton
The dividend tax rule enacted a few years back is responsible for the mega bubble. The big name stocks are more of bond play. But guess what happens when bonds default on interest payments? That is exactly what the fate of Dow is.
READ MORE>>

The divergence continues, stock market still advancing against the worst economic conditions in the last thirty years
Alan Hershey
The double pendulum, when let go becomes, uncontrollable. There are mathematical models to understand its motion. There is no mathematics that can cure the economy and the stock market now.
READ MORE>>

MORE ARTICLES >>