Saturday, September 02, 2006

GLITTER OF GOLD? SAT POST

I understand the nature of inflation and deflation, and gold would do better than many items in deflation.

So far we have leaking air from housing bubble…if it leaks slowly we get more inflation, if it tumbles at some point, we get deflating demand for all kinds of things and deflationary “pressure” . SHARES could deflate while the metal not so much.

And we know how to fight deflation. FED is watching Inflation.

When never sure, we don’t put ALL eggs in one basket. $$ collapse could put pressure of currencies in general, GOLD should shine.

If housing is slowing and we see the numbers coming down, jobs will be shed like hair on a new convicts head. We don’t see this in the numbers t he gov shows you…yet.

121,000 added last report visa vi CES net birth death…stroke of pen. Next month those wont be there.

If reality is we have upsurge in unemployment the market will react violently to that….and the next one in Sept could start the ball rolling to FEAR of economy and we get our Oct bottom.

Duratek

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