Saturday, December 5, 2009, 4:25PM ET - U.S. Markets Closed.
Less than six months after inflation fears gripped the nation, deflationary warning signs, or at least news reports about deflation, are seemingly everywhere.
Deflation is defined as a persistent decline in general price levels, typically accompanied by a severe contraction in employment and economic output. It's premature to declare deflation has arrived, if only because it's too soon to call this action "persistent."
John Roque, managing director and technical analyst at Natixis Bleichroeder, still believes inflation is a bigger threat because of the government's rampant borrowing and spending.
"They have to print money in order to get us out of here [and] inflation is a confluence of too much money chasing too few goods," he says. "Perhaps [inflation] happens later, but [many indicators] suggest it's not happening now."
For example, Roque recommends buying gold in the low $700s. But the precious metal has not been much of a "safe-haven" lately — despite rallying Thursday it's still down more than 27% from its summer high. Gold also didn't respond positively to news the U.S. mint was putting a freeze on gold coin sales amid record demand.
"We find it curious gold hasn't already risen a lot," Roque said, calling it is one of many signals pointing to at least disinflationary pressures, at least for the time being:
Gold price should rise when USA $ drops....for international investors.
gold price should increase when USA $ weakens.....
Inflation, deplatiom it all the same be happy.....Wait and see.......What I never is evrery day the topic is all the same......I have the feeling that the Media is Bias to Bad news even this program......
All you see is bad not good time........
BANKS HAVE BEEN DUMPING THEIR GOLD HOLDINGS AT A RECORD PACE TO TRY TO RAISE AS MUCH CASH AS POSSIBLE. THIS LARGER THAN NORMAL VOLUME OF PHYSICAL GOLD FOR SALE HAS TEMPORARILY HELD THE MARKET PRICE DOWN,MUCH LIKE REAL ESTATE ! MARKET GLUT = LOWER SELLING PRICE....
All of these opinions are based on a mistaken belief that we live in a democracy and that the major world players are gentlemen and women. This is simply delusional. The people in this country that cooked this up now have the American people AND the rest of the world by the balls. All of this black hole of cds debt is denominated in $$$, that's why gold is not going up and why the dollar is rallying. They really are weapons of mass financial destruction and because Hanky Panky and Bernanky control the dollar spiggot guess who gets to make up the rules???
THE REASON OF THIS MESS IS BASED ON LACK OF LEADERSHIP WORLWIDE AND WE ARE VALIDATING THIS SITUATION SO WE GET WHAT WE BELEIVE. WE SHOULD CHANGE TO A NEW MEDIA OF POSITIVE NEWS AND POSITIVE THOUGHTS IN ORDER TO CREATE A NEW REALITIY
$$SURFS UP !!!! Happy Friday Everybody !!
I have never seen the likes of it, the American people are being robbed blind by the federal reserve and don't have a clue how to fix the problem. Here is a clue; the value of gold and silver doesn't change. Get rid of the federal reserve and demand the US Treasury print our money and all US dept will be gone. Get real people, what the FED is doing is liken to the mafia but only legal.
What's that flushing sound? It's the American Economy. You can thank the Community Reinvestment Act and good old fashioned greed. Way to go lawmakers. Congress has had their head up their arses for decades and now the chicken is coming home to roost. Their head are so far up their own orpheus, they don't know how to get us out. Mistake after mistake. I have no confidence in Congress. No confidence in Bush and no confidence in Obama and ll his empty promises neither. It's these politicians that screwed it all up. Great Depression II, here we come.
What do you people who voted for Obama expect!!! He is a Clinton puppet. All the social programs that Hillary wanted will be passed through Obama. The only problem I have is a sinking ship brings everyone down, not just the people who voted for SAME OLD DEMOCRAP crap. Tax and spend DOES NOT WORK!!! I guess nobody bothered to ask Obama what he meant by change. CHANGE TO WHAT?
Watch Ron Paul grill Bernanke on Nov. 18. Paul asks him about his discussions and listen very carefully at the end to what Bernanke says about gold. Then ask youself if the US government could possibly be manipulating the gold market by selling gold reserves to prop up the dollar. - Roque's comments: Gold also didn't respond positively to news the U.S. mint was putting a freeze on gold coin sales amid record demand."We find it curious gold hasn't already risen a lot," Why?
.. "This is total market MANIPULATION in order to convince the public that they should not buy gold or silver with their fiat currency. The "spot" price of precious metals is no longer the actual spot price. ..." etc. Agree 100% Gold is holding well enough. Ok everyone thinks its deflation. Inflation is gonna come fast, hard and destructive,
At the end of World War II, Hitler blamed the German people for his failure. The inablity of people to accept any blame on their on part or to stop parroting the same old tired slogans worrries me deeply.
How long will the American people let our supposed government continue to bail out their friends? These people have run their respective companies into the ground and then get bailed out by their buddies in positions of authority within our government, to include the President. Why doesn't congress just give all of us legitimate tax payers $500,000 a piece and let us save our own homes?!!!!!!!
Why worry about deplation......Who is afraid of Deplation....I said I am happy no matter what.....Having heared about deplation,there is a pages of pages on the news paper about it,News after news about deplation...Having heare of Falling Price......If my Income from my pay packet still the same...Which means my spendable Income will rise and getting stronger.....My purchasing power of my wages getting stronger and wider due to deplation...Lower price strong spending power....In other word I can buy more provided my wages will be the same....Is that a good news or bad....I think that is good....Income with a lower price means you are using impeccable economics..Lower price....Nothing to be afraid folks....Work hard earn more and had a wages,you pay pocket will buy more......Wy because the price is coming down...That is deplation....Be happy and stay at your jobs......Good luck and do not be afraid of Deplation......It is garbage.....
I think once we get over this recession, we should go back on 'gold standard' - dollar backed by physical gold. That will make us strong, and will make the Congress think twice before they spend our money away.
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Marston - Friday November 21, 2008 07:19AM EST
Gold price should rise when USA $ drops....for international investors.