Tuesday, October 12, 2010


RR says " 3rd stage of gold bull when the avg Joe starts buying" I'm going to throw out there the avg dude may NEVER Buy GOLD....and that 3rd phase if it comes isnt spurred by them.

In late 70's last gold bull.....baby boomers were old enough to remember, had parents who bought gold then saw it go to dust...Philapene gold mine investments or Bre-X scams .......then saw gold sit for 20 years....the process to buy it, gold coins etc not clear nor easy......maybe a LOST generation of gold demand.....as we now witness a lost generation for stocks......those who think these the unbuying.....burnt too many times untrusting.....will come in to push this heap of shit(stocks) higher wont ever come......

Coming into Pres election cycle...years 3-4 usually good ones for stocks....for economy? stronger economy = real inflation= higher gold? Gold ATM machines not signalling any warning? maybe when they are at your local food store like red box?

"Cost-of-living adjustments are automatically set by a measure adopted by Congress in the 1970s that orders raises based on the Consumer Price Index, which measures inflation. If inflation is negative, as in 2009 and 2010, payments remain unchanged. " deflation?

Some economic data does show improvement, but if 70,000 jobs created (last report) we need at least 125,000 just to keep even with new job seekers. AVG last 8 recoveries (2003 was prior weakest) shows like nothing in common with current so-called recovery....as at LEAST 8 MILLION AMERICANS gathering MOSS.....43 MILLION gathering food stamps and other Gov assistance, more than ANY TIME in HISTORY....this is our NEW BULL MKT? As also seen, the gov UNDER-REPORTS job losses during the year, adding mythical workers in the "birth-death" game and then waits until FEB of following year to adjust......how convienent!

In a gross turn of fate, QE II and POMO actions along with the competing currency devaluer's trying to increase exports incl CHina, UK and Japan.....will seem to benefit mostly paper assets....and of course THE GLITTERING METAL.

I could argue that things are better, less bad.....but until bank credit/loans begin expanding again.....consumer consume more, save less, housing inventory of unsold homes along with foreclosed and SHADOW INVENTORY gets worked off....and people get back to work.....what you see is what you get.

FED actions are trying to GUARANTEE LOW INTEREST RATES......but with so much to be financed......with GOLD already SCREAMING MADNESS.....how much more printing can be done to give the ILLUSION OF PROSPERITY?


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