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Message: Re: If Deleveraging continues...

Nov 06, 2008 08:20PM

CD, The situation is complicated. Trying to analyze it is like trying to analyze the wind. I cannot understand why people are down. If we were not in gold and silver and Kimber, what else would we be in? The best thing to be in for the past few months is the U.S. Dollar, but I wouldn't touch the U.S. dollar with a hundred foot pole. Would you? Don't be depressed because your 5 year old daughter hasn't found a husband yet. Things happen in their own time, not our time.

Deflation/Inflation: There are a variety of very intelligent people on both sids of the issue. Jim Puplava is correct in what he describes on the show, even in spite of the myriad of ridiculous Q calls he gets debating what inflation is or isn't. I can understand where the mad Q callers are coming from. They, like all human beings, don't want theories. They want results. In other words...They don't want to make small talk. They want to make dough. And they're not making too much dough presently, thus anger, resentment and overall grouchiness. I just hope they're not abusing their wives and animals.

What people need to understand is that inflation relates not to simply money supply, but "active" money supply. In theory, there can be deflation if everyone has a million dollars in their bank accounts, if everyone is so fearful that they do not spend any of that money. Also, there can be inflation if everyone has practically nothing in their bank accounts, i.e. there is a relatively small money supply, but everyone is overly enthusiatic and spending, spending, spending and thus creating a large active money supply.

Now, of course, human behavior is such that large quantities of money tends to make people more profligate in their spending, and small quantities of money tends to make people more thrifty, BUT THIS IS NOT ALWAYS SO. Remember this... In life, anything goes sometimes. The gimpy guy who can barely walk, does sometimes hits the home run to win the word series game, ala Kirk Gibson in 1988. Watch this: www.youtube.com/watch?v=PPvDnxvvQ0A

The psychological component can make things move in all sorts of crazy ways in the short run, but natural laws apply in the end as they always have. If you don't understand this, then this is why you are down. Honestly, I'm worried more about my kids' future SAT scores than I am about Kimber, and I have over half a million dollars in the company.

I'm not down. I know exactly what I am doing here. I know what has to happen. And I know it is not going to take twenty years to happen. Gold is manipulated. People are selling things they don't have. The system is corrupt. So what? I'm not corrupt, and gold is certainly not corrupt.

Think of Kirk Gibson. He is the U.S. Dollar. The U.S. DOllar is hitting homeruns off a hall of famer right now, but it has two bad knees and it is getting older by the second. Judge not by appearances, Judge with right judgement. Please! Bull






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