MORNINGS DATA COMMENTS

http://www.briefing.com/Silver/Calendars/EconomicCalendar.htm

Does this look like inflation to you? There is NO foundation for a further rise in gold and silver based on this data IMHO.

Now certainly we have had asset inflation, but it is SEGREGATED, on a narrow defined area.

HAS higher OIL worked its way into the equation? What was different in the 70's when gold got near $900? No tech stocks to siphon off volume, BONDS offered screaming yields, we had a FED that reacted promptly to the inflation threat, we had TOO MUCH MONEY CHASING TOO FEW GOODS.....that is the essence of inflation gold is not going to see anytime soon.....NOT with CHINESE production seemingly limitless.

Not with 6 new dollars printed for each one that existed prior to the last 40 months, with historical easy money, with housing going thru the roof, higher oil prices etc, we don't even have a NEW HIGH for gold in 2005!
Now I'm not dissing gold, I am pointing out we have a BLACK HOLE that is sucking up all this liquidity without a marked pick up in inflation, in at least the way it is beiing presented, perhaps a whole other discussion on manipulated data! Hedonic BS seasonally adjusted hooga booga.

Surely in my business I keep getting 4% increase here, and there, but "back then" I would get 10% increases which is like 15% increases now or more.
A 50% retrace of the dollar loss from high bring us back to above 100 on the index,our rates are higher than Europeso even low FED funds draws money here.

WILD CARD, the TRILLION $$$$ Treasuries held by Asian countries......is
there a limit to how much they will buy?

What would make them sell?

MORE Likely yields fall, then selling causing yields to rise, IMHO.

I again bring attention to the MANY EXTREME readings and data we have right now, and my conclusion based on this is we will enter a VERY DIFFICULT period of ADJUSTMENTS........I am not a Shaman....WHEN it begins is not as important as understanding it WILL BEGIN.

Duratek