The Daily Paul ran this bit entitled Martin Weiss on Gold. It is actually an interview with Jack Crooks, the currency analyst. Here it is in its entirety, the Gala Issue: Biggest Sea Change of Our Lifetime!
Is this not the same publication that earlier in 2008 sent out reports with pictures of angry looking Arab men with 'death to America' looks on their faces in service to Weiss' (or his analysts') view about how high oil was going as they pitched the resources trade? I know that Weiss has also long advocated T-bills, which I agreed with and held all along. But there is a patina of sensationalism on the surface here. I see it as further institutionalization of deflation. Money & Markets is on the case 24/7, pounding out the emails and scaring the public (a friend in town has been sending these reports around lately).
Here is a quote from Mr. Crooks:
Jack: Currencies are measured against each other. When one is going up, the other is going down, like a seesaw. Therefore, there’s always at least one currency going up. There’s always a bull market in currencies.
Yes, until the system breaks, I suppose there is. Mr. Crooks sees the dollar going higher (he could be right). But there is absolutely no concept of value in dollar bullish analysis. Then again, I suppose FOREX jocks don't care much about value anyway.
They also riff along on gold, which many deflationistas just cannot resist:
Jack: Gold is holding its value the best compared to the much larger percentages you cited earlier for other commodities. But I believe it’s only a matter of time before gold succumbs to the deflation as well. What do you think?
Martin: This is hard for a lot of people to accept, but it’s also hard to envision a situation in which gold defies gravity for much longer. It’s still a good insurance policy against governments that could run amuck. But I suggest you reduce your holdings to a bare minimum.
Marty is all about price I guess. Just like the bullish casino patrons were to the upside in the inflation trade, again if memory serves included a few of Martin's own analysts in Money and Markets. Why is it so difficult to get the middle voices heard? What is so difficult about the concept of value as opposed to price? Are we so brainwashed that all the markets are to us are just a bunch of digital red and green Christmas tree bulbs with numbers on them?
What the heck, here is one of Weiss' analysts, Sean Broderick waxing hysterical about $200 oil and war with Iran. Here is another one pumping energy stocks and talking about the dollar going even lower. Meanwhile, Larry Edelson checks in with Oil and Gas Prices Peaking? and offers 5 reasons why they are "headed even higher."
These things are all from the summer of 2008, at the height of the oil mania and they are all from Money and Markets, who now bring us the dollar bullish deflation analysis. Some trend following going on here or what? I was so bearish on oil last summer I could taste it, if not profit from it (dohhhh!!).
In the previous post, I noted that I have been neglecting the price of gold because it really does not mean that much to me. That is the truth. I understand that it is a volatile, ancient and storied monetary metal that gets people way too emotional. The concept of deflation, which most people do not understand beyond a cartoon format, is now becoming rooted. Just as inflation hype did. A world full of casino patrons begins to take note. The world turns. Same shit different day.
Understand value. In the case of my investment stance, value is found in the metal that cares not about all the intellectual masturbating on deflation. It is a world in disarray that is changing, not a heavy lump of monetary stability. Value baby... value. Gold's price certainly can decline, as noted here forever. But it will decline less than positively correlated commodities and cost inputs. Did we nail that or what?
Meanwhile, some deflationists sit around waiting for it to succumb. As for the gold miners, here is the latest snapshot of the gold-oil ratio (GOR) with the other notable gold ratios in the lower panels.