Gold and Oil will fall sharply in the next several months to mark the era of deflation
Fred Day
Feb. 2, 2008

Several months of commodity and wage deflation can see gold and oil price correct sharply. The commodity and wage deflation can continue for years as a mater of fact. The gold market is showing clear signs of tiredness. It is true that the politicians are eager to print money but that may also change if Obama or McCain comes to power.

The US economic depression is real. It is the result of underemployment. People have jobs but those jobs are inadequate to pay the bills and live a dignified middle class living. The net result is collective economic depression and a mortgage meltdown that has crippled the financial system.

The gold and oil should fall sharply in the next nine months as liquidity disappears, middle class struggle to pay the bills and over supply dominates the market place.

Whenever gold and oil has rallied it has brought some kind of inflation. Whenever gold and oil have fallen in price it has signaled economic slowdown and eventually deflation.

We were in the period of economic stagflation. The stagflation is slowly changing to deflation driven depression. In that environment gold can fall below $600 an ounce and oil below $50 a barrel over the next twelve months.

Gold and Oil will fall sharply in the next several months to mark the era of deflation
Fred Day
We were in the period of economic stagflation. The stagflation is slowly changing to deflation driven depression. In that environment gold can fall below $600 an ounce and oil below $50 a barrel over the next twelve months.
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As world economies get depressed from the ripple effect of US depression, the dollar index can actually appreciate
Kirsten McLauren
The next wave of rate cuts will start in Europe. Other than Yen, all the currencies may fall against dollar in the several years. A very long term bottom is in place in US Dollar.
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The gold market rally tells that the long bond yields can skyrocket and that will create massive depression in world economies
Pamela Jones
According to some analytic and quantitative models, the yields on the long term US Treasuries can sky rocket to 12% or more over the next several years.
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Many major banks and financial institutions will fail between now and 2012
Sam Adelton
One bank failure and the run on the same will create the panic and people will start withdrawing all their money from the banks. The first announcement that your CD will fetch you 98 cents on the dollar will create the avalanche.
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Financial meltdown spreads from Subprime to other healthy part of mortgage industry as prices rise and people start losing jobs
Kara Zeilig
The financial meltdown that started from subprime areas of the mortgage industry has now spread into the other so-called health parts of the mortgage industry.
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The primary election is between Bill Clinton’s moral hygiene and Obama
Hrithik Ratnagar
Not every one should become President of America. When one do, they should maintain some standard of moral hygiene because young children all over the world see the US President as some one to follow.
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