romans holiday

Surely, you would have to be absolutely certain that a possible depression would not knock out the bull market in commodities to do that. I am still undecided about the bull in commodities due to this looming nasty possibly global recession. Edit: Some of the commentators calling for the bull in commodities have only ever seen inflation everywhere and have pretty much missed the deflationary picture until now.

Wouldn't surprise me at all to see a big dip before peaking again. Will be good to have some dry powder for these ocassions. I always tell myself I will sell a few ounces on a peak to buy on the dip [fishing line]... but can never bring myself to do it. Main thing is to have gold and hang on to it.

I have been thinking about a looming depression lately. After viewing some of those gloomy pictures, I find myself doubly savouring the Indian curry as I mull over future possibilities. Puts my holding of bullion in a whole new light... one coin could possibly provide those curry meals... more than that, feed me and dependents... for a whole year.

...at least it's left the station.

Yup, I am hoping to buy in a few months times on a dip. The good thing about this deflationary period is it provides a window with less urgency to buy. Though I do wonder how long this window will hold as the Fed seems hell bent on liquifying the system with whatever it takes. [Edit: As the saying goes, be careful what you wish for... in trying to thaw out the credit markets ... the markets might end up in drowning in "money".]

Oil, platinum and silver down..... gold up. Commodities down ... money up. Looks like a deflationary scare in the market here. [Edit: I also think silver will do well later as money].

In the short term it will no doubt do marvelously. Many are going into the dollar and treasuries now due to the deflation scare. But the US economy and with it the dollar are starting to wobble.... watch everyone bail out of the dollar in the future. Like the Titanic, the dollar will go straight up in the air before finally sinking. Edit: What did it do compared to a decent currency?

If the dollar is toast... or charcoal.. as many here think, isn't it pointless to price gold in dollars? I really wish we would forget about dollars... they are so... yesterday and can not give a real measure of value. I find it a little irritating reading the articles... gold will be $5000!... no $10,000!!... when dollars are crap.

Bob Hoye: pessimistic about the plan and sees the "Berlin Wall" of fiat currency possibly coming down. http://howestreet.com/audiovideo/index.php...mediaplayer/968

That's the one. Refers to the contraction of both the supply of money and credit. I must be an Austrian. The 2nd hour explains the big picture extremely well IMO.

Yeah, but the word deflation has a wider meaning than just lower prices or a decreased amount of dollars in circulation. It also has a macro-economic meaning. For example, a contraction of the credit markets is deflationary. I think this is the reason Jim is averse to using it. The great interview he had in hour 2 was all about deflation.

Did anyone listen to JP on FSN Q-calls today? Though I greatly respect JP, I think he might be a little confused about the velocity of money in the US today. Two callers asked why we we could not be experiencing what happened when the bubble deflated in Japan, which led to deflation and a hoarding of cash. His answer was although the CB pushed out enormous amounts of money, the velocity of money in Japan was extremely low with the implication that it is not in the US. But is not the velocity of money in the US extremely low now also... this is what we call the credit crisis... liquidity trap... frozen credit markets...when money is not moving! Notice also that investors are hoarding cash! Also, he keeps referring to "disinflation" as if he is allergic to the word deflation. Any opinions?

The first audio by David Tice is a good listen also. http://www.prudentbear.com/index.php/audiovideo

Thanks Steve- I was right impressed with that interview and think he gives an excellent justification for our truly held belief that gold will do well.

GREAT interview on FSN today looking at the Credit Crisis which has been understated by the FS radio team so far IMO. This interview is spot on by outlining the flight to treasuries with a future problem with treasuries and the dollar itself in the near future. This is what I have meant when saying we should focus on the devaluation of the dollar and a currency crisis. http://financialsense.com/fsn/main.html 2nd Hour Guest Experts Select an Audio Format RealPlayer | WinAmp | Windows Media | Mp3 Doug Noland Market Strategist, David Tice & Associates Topic: Update on the current credit crisis ~ worse than expected

Still can....and will be able to. Which may not be true of $1000 in paper. Edited.

Yes remind yourself that the dollar has a quadrillion in debt obligations. Quadrillion = 1000 trillion.

I am already 50% in gold. The other 50% is in future earnings.

Thoroughly confused whether we will have deflation or deflation? Perhaps a simpler way of looking at it is to ask whether the currency will implode. Currency survives: deflation Currency implodes/devalues: inflation

Have you thought of Chinese Yuan? It could do very well with a sharp devaluation in the pound/dollar. Though I think Swiss Francs are good also. Next time i am at the airport I am planning to buy a little of both.

http://kr.youtube.com/watch?v=UppX6vP3c4g Piece of calm in turbulent times.

You mean confidence to buy gold?

platinum down also... looks like gold is breaking away from the commodities. Good sign this.

Wow... gold rocketing up... oil down.... everything else down.... gold coming into its own. Breakout.

Rocket time?