[lbo-talk] Gold: the next bubble

123hop at comcast.net 123hop at comcast.net
Thu Apr 21 16:03:37 PDT 2011

Yeah and, call me naive, but I dont' see how inflation is a threat when no one has any disposable income except the upper 5%.


----- Original Message ----- From: "Doug Henwood" <dhenwood at panix.com>

On Apr 21, 2011, at 5:56 PM, 123hop at comcast.net wrote:

> Talk of gold going to 5000/oz. And discussion of how this would be the result of inflation.
> http://money.msn.com/investment-advice/why-gold-could-hit-5000-dollars-mirhaydari.aspx
> But I don't see inflation. I see a deflationary spiral, reflecting the race to the bottom.
> So, if it's not inflation related, it would just be the next bubble, yes?

The whole commodity complex looks to be in a bubble. There's no fundamental reason why oil should be $112 either.

If inflation is such a threat, why are 10-year TIPS priced for an inflation rate of 2.6%?

Doug ___________________________________ http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

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