Jubilee Prosperity

On the other hand, after GDP fell in excess of -16.5% yoy, the textbook definition of depression being a greater than -10% drop in GDP, just try to find a headline article on Depression or even Deflation, other than the psychological sense, (in some cases caused by economic events).

The few that dare use the D economic word seem in denial.

They assert Depression just can’t happen again, because of brave Fed and Treasury actions, forgetting the leaders of the Fed and Treasury denied it was coming after tightening hidden M-3 a whopping -13% for over a year: http://www.shadowstats.com/alternate_data

Motley Fool perhaps had the most denial today: Deflation Unmasked: Why It Can’t Exist a Fiat Money System (sic). Presumably they meant In. The opening of the article leaves no doubt: For all you deflationists out there.. I’m calling you out! Please keep your ignorance to yourself, there is already enough throughout the economy.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=263355&t=01004136043043786352

Okay Fools.

Perhaps this is how the Big4 used the cover of popular sentiment to accumulate long positions in the dollar from the large numbers shorting it.

The Big4 were recently 68.4% long and 29.7% short the dollar, hardly a sign they expect a dollar collapse or hyperinflation any time soon. If history is any guide, the smartest money figured out gold is going down and the dollar up in deflation.

Small fry can fantasize how this time, it may be different, the big smart money will be wrong and GATA right the first time in a decade or more as COMEX and the collapses. They can ignore the fact that the Central Banks except the IMF are now buying gold to hold it up.

We would rather bet on the sun coming up, at least until the Big4 change their position. Blind belief in gold and inflation can be a dangerous religion…

Regards*Rich

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3251493

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This entry was posted on Tuesday, September 22nd, 2009 at 10:50 am and is filed under Money doctor and Counselor. 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.