What do you do when raising interest to fight inflation makes inflation rise much faster, but not raising rates allows inflation to keep rising? We are seeing that now in housing.
Haggith calls the stock market "delirious." He says, "At least with gold, at some point you're going to get your money back when it goes back up again." Not necessarily so with stocks and bonds.
The gold price will eventually reflect the latest effects of inflation in a higher inflation-adjusted price. We just don’t know when. Nor does anyone else.
Could this mean that a long-anticipated war in the Middle East is about to break about? Regardless, if the price of oil is in fact bound for $117, something world-shaking is about to occur.
Understandably, you now may well ask “So how low is low?” There we shan’t go, save for some structural support from this 1865 level down to 1813 built in early March.
Dent says, "You can't just print money forever and think you're going to end up in la-la land...This economy is going to fall apart faster than people think."
Using three vantage points, the US dollar, the Gold/Silver ratio and the 10yr-2yr Yield Curve, broad markets are indicated to be at an important decision point.
