Hey kids, I hope you are all paying attention. I think we are possibly seeing some key events happening. Late news today has oil dropping below $65 a barrel, (sounds good but it isnt) holiday sales are off to a bad start (down 11%) Gold, silver prices dropping even though there is a physical shortage. Chinas manufacturing continues to drop as does Japans exports. Japan has been printing currency as fast as toilet paper trying to prevent deflation. We are doing the same, just at a much slower pace. As these indicators of deflation continue I believe we are going to see printing ramp up to unimaginable (at least a few years ago) levels. Deflation may be the disease that brings upon the printing of the dollar to be cure. Except in the case of the dollar the cure will end up killing the patient. I never saw the decline in the price of oil as being the trip wire. The weaknesses in the global economy could just be the stage that allows this to bring about a collapse. Remember gang as much as deflation sounds good, it is a hundred times worse than inflation on an economy.
Posted on: Mon, 01 Dec 2014 02:53:36 +0000
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