Thread: Global all time highs in Gold

I think this recession has a long way to run. And one big problem that poses is that the government will continue to try to stimulate the economy with more spending. We are already hearing that based on the 10.2% unemployment. I listened to Rosenberg this AM on Bloomberg radio. He pointed out that household debt is at 130% of incomes, down from 140%, but up from the norm of about 60-80%. He thinks it will take 5 years for consumers to get...

I mean loss of confidence in fed to control rates. Do you remember when oil was going up and everyone called it inflationary? When oil went from $60 to $140 in 18 months it was deflationary. Too much too fast. If interest rates rise quickly, it would be viewed as inflationary short term, but impact would be deflationary as it would crush lending. Of course, gold could go up for the next 10 years regardless of what else happens. All it takes...

Interest head up will be due to real inflation, not loss of confidence. If it's due to loss of confidence, there will be more money pile into gold.

Gold is hitting all time highs across multiple currencies. Anyone who can look at that 10 year chart in the above article given our current situation and think that gold falls in a deflationary environment has rocks in their head. Gold predicted the current environment when woke up out of its multi-decade bear market a few years ago. It loves this environment.

Exactly my theory on most assets. A story begins developing which attracts initial interest in an asset. Early adopters spot the trend shift or know the cycles. Many doubting thomases. The story builds and attracts more people... yet many still doubt. Eventually, the asset gets to a certain level where it gets more and more attention. At that point, everyone and their brother wants in. Asset has a blowout rally/top... boom... crash... the...

With that senerio (hyperdeflation) Cash would do well (Cash would be King) or not???? Actually I see a weak dollor as an invitation to foriegn investors to buy our stock and bond market. I think we will see both higher commodity prices and higher stock market prices.

unemployment to 20% ? already ABOVE that in several EU nations. riots ? demonstrations ? protectionism ? currency intervention ?