gold decline - time to buy???, page-41

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    The 1920s were roaring boom times with inflation to hyperinflation in major economies. That's when gold performs best. But we're now entering a global deflation (not seen since the 1930s).

    And no amount of free and easy money (ie. 0% interest rates, bailouts & QE) can prevent the slide (as evident in the declining demand for credit and the falling velocity of money). That's because outstanding debt can implode much quicker than central bankers can inflate and you can't force people to borrow money.

    Japan has been trying this for decades to fight deflation, to no effect, and we had a taste of it in 2008. During the initial GFC people sold anything & everything to run to the 'relative' safety of the US dollar and Treasuries. I don't expect any different as the next more severe phase of the GFC intensifies throughout 2012.
 
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