Comments on: Gold, China, and the dollar http://www.sovereignman.com/finance/gold-china-and-dollar/ Tue, 07 Feb 2012 08:30:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: FrankD http://www.sovereignman.com/finance/gold-china-and-dollar/comment-page-1/#comment-1972 FrankD Wed, 07 Oct 2009 18:32:16 +0000 http://www.sovereignman.com/?p=757#comment-1972 Simon- any notion on the reaction in India? Simon- any notion on the reaction in India?

]]> By: PPRFQ http://www.sovereignman.com/finance/gold-china-and-dollar/comment-page-1/#comment-1970 PPRFQ Wed, 07 Oct 2009 17:19:30 +0000 http://www.sovereignman.com/?p=757#comment-1970 simon- would be interested to hear about gold investments in asia. i agree with your assessment- the DX was all overthe board ysterday on Fisk's article. I didn't realize he could even count. Regardless, DX may bounce back but the rest of the worl dis definitely tired of this ridiculous game. china is holding on to liabilities in dollar reserves. what's the point? the financial benefits of holding treasuries went away a long time ago, and there's not much political benefit anymore either. i don't think anyone wishes the US economy ill, they're just looking out for their own interests. thank you for your insights. simon- would be interested to hear about gold investments in asia. i agree with your assessment- the DX was all overthe board ysterday on Fisk’s article. I didn’t realize he could even count. Regardless, DX may bounce back but the rest of the worl dis definitely tired of this ridiculous game. china is holding on to liabilities in dollar reserves. what’s the point? the financial benefits of holding treasuries went away a long time ago, and there’s not much political benefit anymore either. i don’t think anyone wishes the US economy ill, they’re just looking out for their own interests. thank you for your insights.

]]> By: Occdude http://www.sovereignman.com/finance/gold-china-and-dollar/comment-page-1/#comment-1963 Occdude Wed, 07 Oct 2009 02:03:52 +0000 http://www.sovereignman.com/?p=757#comment-1963 By 2018 we could have equities at 1800 on the DOW. Gold could be 1800 or 600. Oil could be 10 dollars a barrel. Point is, these things are currently measured in dollars. There is a tremendous amount of leverage in the system and dollars are the medium for that leverage. When wholesale liquidation comes, all these investments will be liquidated into dollars due to the orign of the investment and the perceived safety of the dollar. This will create tremendous demand for dollars leading to its rise. By 2018 we could all be looking at 80-90 percent losses on commodities and equities in dollar terms. I dont think gold will fall that far, but 30-40percent is not out of the question. I think the best course is to straddle the inflation/deflation debate with the ETFs GLD and SH. One is long gold the other short the S&P. Do not discount deflationary forces easily. Deflation is here and now while inflation/dollar collapse is there and in the future. By 2018 we could have equities at 1800 on the DOW. Gold could be 1800 or 600. Oil could be 10 dollars a barrel.

Point is, these things are currently measured in dollars. There is a tremendous amount of leverage in the system and dollars are the medium for that leverage. When wholesale liquidation comes, all these investments will be liquidated into dollars due to the orign of the investment and the perceived safety of the dollar. This will create tremendous demand for dollars leading to its rise.

By 2018 we could all be looking at 80-90 percent losses on commodities and equities in dollar terms. I dont think gold will fall that far, but 30-40percent is not out of the question. I think the best course is to straddle the inflation/deflation debate with the ETFs GLD and SH. One is long gold the other short the S&P.

Do not discount deflationary forces easily. Deflation is here and now while inflation/dollar collapse is there and in the future.

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