Saturday, October 24, 2009

Steve Meyers Interview - Interesting...

I am not sure what he is REALLY looking for regarding the dollar...but it seems he is looking to see if the unit can rally or not...and then make a determination. I see very little case to support a collapse of the dollar. Too many people are looking for it. I guess there is some chance that the dollar could selloff and the market could sell off - which would likely indicate a hyperinflationary condition. He does spend some time on this outlook which does not have much of a shot to me...For oen, hyperinflation is much too obvious a trade at this point. I do think hyperinflation will happen once the fiat system fails, but relative values will be more appropriate then and fiat currencies will end up being replaced. This looks to me to be sometime in the next few years - sometime in the 2012 to 2015.

This video is a "First Baptist" production. I do not like to mix religion and economics and am not affiliated with them in any way. I do think ironically, that there is some religiousness to the attraction of people to the long Gold mentality. I, for one, am not of that view. I believe that the most Armageddon type scenario would be a hyper-inflationary depression....which is why its attractive to many at this point. Gold fits nicely in that view.

I believe that a hyper-inflationary depression would ultimately lead to much more wealth destruction and futher undermine appropriate relative values. This would be catastrophic. A deflationary depression on the other hand, while catastrophic also, would be serving a practical purpose in purging the system and ushering the return to a real-value basis for relative values. This would end up improving the very long-term prospects for individuals and businesses. Keep in ming that "Very Long-term" part.

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