the price of gold stocks in january 2012, page-41

There is deflation in the share market.

Last year it was at 6700 and now its at 3400.

Last year ABS was worth $1 billion.Now its worth nothing.

Storm was worth $500million today its worth nothing.

House prices have all fallen.

Top end houses are down 30%.

Mid tier houses down 10%

Low end houses are about even.

Car prices have plunged.

Big ticket items have plunged.

Commodities across the board have plunged.

The question gold bulls need to answer is can the fed print fast enough to create inflation to offset the massive deflation that is occurring across the world.

Deflation is very hard to combat.

House prices in OZ have so far to fall.

Once the vicious cycle starts it is impossible to stop.

Once a deflationary spiral gathers pace,it can't be stopped.

I myself am thinking of buying some new vehicles,but the Reserve bank is hinting that interest rates will be dropped further.

So I will wait and see.

That is what happens.

If you think you can get a better deal by waiting,then you will wait.

They should have recognised the problem and dropped rates to the low point all in one go.