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Tuesday, November 25, 2008

Gold screams about debasing of US Dollar and Treasury Bubble Trap. GDX, AUY, TNR.v, BVG.v

Gold made its signal last Friday with a second day rally. Quantitative Easing was already in the cards and today we are witnessing it: printing money and buying Treasuries all across maturities, hope is that:
1. Low yield will bring more lemmings into the Bear Trap of Treasury Bubble and US Corp will sell debt to third parties to finance bailouts.
2. Low yield will push money into other assets to finish Deflation death circle with forced selling and collapsing prices.
3. Results will be lower US Dollar and Inflation most desired outcome.
Hold onto your Gold and Silver pennies left.

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