finally ready to blast higher, page-29

:) you tell folks things are going to correct on the way up and they have kittens, its because you missed the boat, your off your rocker :)

the craziness is the mono scenario gold equity investors, they tell us only one scenario will transpire in the future, no others should or will be contemplated.

China is 1/5 the size of the US economy, 40% of that is reliant on US exports, they built massive export capacity based on US consumption, with the stimulus post GFC that has occurred in China that production capacity has expanded to ridiculous proportions, think ying and yang, in the mono scenario the US borrowed to consume like there was no tomorrow, the yang of this is that the Chinese, Germans and Japanese built factories to supply this US demand, now this demand has vanished the loss of income for the export economies has rocked them to their foundation

In the mono scenario there is only one country in trouble, only one that prints money, only one with massive rising debt, only one headed to hyper inflation

In reality the Yen and Euro is going to happen into crisis way before the US, Japan is like to implode this year

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6927923/Global-bear-rally-of-2009-will-end-as-Japans-hyperinflation-rips-economy-to-pieces.html

As the Yen falls out of bed the Euro is being undermined by the fiscal position of Greece, UK, Ireland, Italy

This will strengthen the USD, weaken the AUD and the gold equity mono scenario investors face the three horses eg rising USD, falling AUD and USD gold and a flight to safety

IMO the mono scenario gold equity investors are taking a rose coloured look at the world, they are being way to optimistic about the global economy. IMO we are in much deeper trouble than the mono scenario ever contemplates