Jubilee Prosperity

Cash and credit became increasingly scarce due to defaults and Fed tightening of the money supply, although not one man in a million may understand this to paraphrase Baron Keynes.

http://www.shadowstats.com/alternate_data

The dollar short carry trade may be a deflationary accident waiting to happen as banks gamble to get out of trouble, and dig themselves deeper.

Gold may in fact be headed down longer and sharper than most recently born-again gold bugs can absorb or afford.

The destiny of all free economies is to deflate.

Exactly why was the IMF, representing the largest economies in the world, willing to sell 200 tonnes of gold to India at a record price and create a Special Drawing Right currency that is 60% dollars?

Why are Big4 insiders, except perhaps ABX, where President GHW Bush sat on the Advisory Board with Canadian Prime Minister Mulroney before his son devalued the dollar, now selling gold in size?

After covering some of their short hedges at a write-off cost of $5.7 B, ABX admitted gold may go down, citing a floor of $900.

Maybe:

http://www.cnbc.com/id/33875450/site/14081545

Gold went from cult status to Wall Street Wisdom.

Having survived numerous booms and busts, please forgive us for being skeptical of conventional Wall Street Wisdom. What everyone knows is worth less than what a few figure out.

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This entry was posted on Thursday, November 19th, 2009 at 7:46 pm and is filed under Capital Preservation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.