NFTRH55 has just been published for subscribers. It portrays a different environment from NFTRH4, dated 10/18/08, excerpted below:"As for gold, I parrot once again ‘the metal is not about price, it is about long run value’ as global casino patrons are finding out. People fretting about the nominal ‘price’ of gold will be flushed if the headline number goes to our potential ( potential, an important word) target of 650 http://biiwii.blogspot.com/2008/09/gold-big-picture.html in the hue of that flashing red DEFLATION sign. Gold was flocked into along with USD in the acute phase of the panic. These panickers are now being punished. It is the way this market works. You own it for long term value or you pay the price for short term emotion.
Meanwhile, things are setting up nicely for a contrary play where the entire world is so gripped by credit and economic contraction, and freshly printed funny munny, rather than blasting out full force from monetary policy spigots, just oozes with the viscosity of prerefined crude oil and the media still work Armageddon ’08 into the terrified public’s consciousness in a would be run up to the great(est) depression. Funny thing is, a majority of the new depression mongers were just months ago blissfully aboard the great inflation trade. This is the way markets work. Always have, always will I suppose. We may indeed get a depression, but with the pile of ‘money’ being willed into existence, any reduction in the viscosity of the goop dripping out of the spigot is likely to signal it will be an inflationary one. Watch all sectors closely going forward."
