Monday, November 5, 2007

The Markets are Whispering - Can You Hear Them?

As gold rises and silver falls or treads water, the markets are whispering a telling message.
Stagflation this way comes. That tart cocktail of rising produces and reduced economic activity with recession or even depression level statistics while prices rise in many of the key areas of food, energy, travel, health care, education, insurance and even in the normally docile imported electronics, and clothing sectors.


Silver finds its way into multiple industrial goods and responds to industrial slowdowns - anticipated or real. Gold is primarily a monetary metal and will soar with inflation expectations and/or fear. Both will fall in general with a declining belief in catastrophic occurrences, or a rise in belief of business as usual.

So we are headed towards catastrophes, have lost most of our belief in business as usual, and expect higher costs with lower industrial or economic activity. Pretty much spot on with what is really happening day to day in the world.

The banks are imploding - faster the better for the health of the world and each of us.
Governments are distrusted corner to corner, their totalitarian hands have grabbed our collective throats from the marble foyers of state houses across the globe.

The metals with 5000 years of wisdom are whispering. Hoarse with age, powerful with insight. Heed their wisdom and prosper. Ignore them and perish.

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