Wednesday, September 16, 2009

WHATS THE NEXT BUBBLE

Ass kicker Mike Pento takes on Ben and his track record. Pay attention to his take on the credibility factor....Should you take his advice and pile into gold......sure.......but when.......maybe we get our chance soon....BUT....if the dollar breaks 75 you are going to have to take a heavier stake in the miners and boy you better hope I am wrong......that means severe STAGFLATION and I don't mean in a few years . I am talking FAST and HARD. Just the way you like it. Except it won't be the way you like it. It will be prison sex. Bread 5 dollars a loaf then ten dollars a loaf....eggs 5 dollars then 20 dollars. Gas 5 dollars a gallon overnight seemingly. It will be fast brutal and absolutely no fkn prisoners.......nuclear winter.

Now for the good news....I believe GS still has control.....and are preparing to at least hold the dollar and squeeze the shorts hard. If I am wrong..........we are all FKD.....there is no way to judge right now if I am right but the answer will appear soon ........watch the USD.....
http://finance.yahoo.com/tech-ticker/article/332860/Go-for-Gold-Inflation-Is-Here-and-Going-to-Get-%22Much-Much-Worse%22-Pento-Says?tickers=GLD,EGO,GEX,TIP,TLT,TBT,UDN&sec=topStories&pos=8&asset=&ccode=

11 comments:

  1. kli, we are pretty close already..

    seems like the lack of demand for everything is keep inflation at bay...

    Last year when the dollar was this cheap we already had 5.00 dollar gas. now it is 3.15 in ca. demand for gas is really weak.

    seems like very few are worried about the weak dollar and thus far are happy to have a rising market..

    Gold of course is on the rise. I am surprised however how much is costs to go to MCD! Seems to cost a lot more than it used to.

    3.15 cent gas prolly is already hurting recovery efforts and most people never returned gasoline frivolity.

    waiting for the dollar squeeze maybe short oil?


    da black sheep.

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  2. China seems to have put a floor under gold and a roof over the dollar right now call it a fight between them and GS. I hate to say it for fear of what will happen but looks like GS is fighting one hell of a fight but losing ground. Gold is nearing it's all time high. But the thing that is going to blow this all sky high is the commercial real estate crash, these chickens are just now coming home to roost and when they do there goes about 2 trillion in bank write downs. The Stock market is WAY over valued
    here I'm not touching it I've moved to AUD and NZD dollars and miners and gold. Thanks for the info Kil.
    Matt

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  3. kli,

    http://www.rickackerman.com/2009/09/dollars-next-rally-looks-doomed/#more-9886

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  4. Matt your assessment is shared by some knowlegdeable people and is THE story it seems. To me there is a much greater risk vs reward for gov and GS to move this much higher...it is a high wire act and NO NET........ackerman article above is good and essentially gives my inclination......but.........

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  5. sheep remember the arguments over deflation vs stagflation......there is NO DOUBT we are going to stagflation....true deflation still 2 years away

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  6. Kli.

    So what miners are to be bought

    canadian

    african

    south american ??? any advise

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  7. GG SSRI SLW AUY GORO I only own auy now......but will be waiting.....you can still play these on trades imo......but......the dollar squeeze IF it comes will hit them hard

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  8. Real nice short squeeze happening with LCC, heheeeee!

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  9. a moment of silence for the shorts in LCC ........Joe said that the squeeze would be a slaughter......and it was

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  10. Kli brother,

    Just came back from a two-month trip to Asia. Are you still holding SGY? I bought it at 8ish and sold it yesterday at 18.30. Still holding UNG. I have patient.

    Best,

    Ryannayao

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  11. The carry trade is building again & even GS wouldn't want to stand in the way of the volumes they can muster.
    Borrowing short-term in dollars is cheaper than Yen or Swiss Francs and the currency is weakening.
    The only real defence is to raise US short-term interest rates, but what would that do to over-leveraged green-shoot simulation.

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