Monday, January 12, 2009

Deflationists Silenced? We'll See.........


DEAD DOLLAR BOUNCE

Wednesday, January 07, 2009 - FreeMarketNews.com
The marquee line best describing the past two to three months has been that the Dollar Death Dance has been fueled by failure of US banks & corporations, along with sponsored assaults against speculative hedge funds. The climate has changed from liquidation and bankruptcies, obviously steered and exploited by the Powerz, toward more legitimate attempts to have a recovery initiative take root across the landscape, It is fast approaching a wasteland. The most vivid signal of market manipulation, intended to benefit the USGovt borrowing costs, and designed to promote the totally false notion of a Flight to Safety, has been the USTreasury bubble. It is not the last bubble. Next will be the gold & silver bubble in the next few years, as investors wake up to the reality that hyper-inflation is to take root in 2009. We have ridden the gold wave from the start. The precious metals will zoom in the middle months of 2009, as 2008 prices will be seen as the best bargains in a decade. The deflationists will be silent by the yearend.

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