fragile friday, page-36

regualrASX, perhaps you can take heart from Jim's message below. It sought of paints a picture where deflation will lead to hyperinflation, instead of the other way around as peddled by the likes of Prechter. Who is right? Time will only tell.


Dear Extended Family,

There are times when you must ignore the hedgie madness in the marketplace and revert to why we are doing what we are doing.

The deflation being spoken of today is the catalyst for the coming hyperinflation. The fact is it has been so in all historic examples. The flooding of markets with debt has been brought on for different reasons, but the ways and means of hyperinflation has always been the same.

Therefore it is todays financial market deflation talk that is the reason why you should own gold.

This continued downturn in business will find government in a panic, not in austerity when their constituency does the Greek dance of panic as the pain on Main Street becomes intolerable. It will.

Contemplate what each of the following means to you one at a time. Do not try to do them all at once. You do not want to do this as a routine memory exercise as much as a meditation on why you have bought the insurance you have.

- Gold is a currency with no liabilities attached.
- Gold is competition to paper currency.
- Gold is not a commodity.
- Gold is a barometer of fear.
- Gold is a barometer of confidence in Government.
- Gold is insurance.
- Insurance is not something to trade.
- Gold is money when money fails.
- Hyperinflation is a currency event, not an economic event.
- Hyperinflation is a currency event described as a loss of confidence in the currency.
- Gold in your hand eliminates counter-party risk.
- Gold is the high ground when the global tsunami hits.
- Gold removes financial agents between you and your assets.

Be strong in your conviction and do not be bothered by the return of the Prechterites and top callers.

http://jsmineset.com/2010/07/01/why-we-do-what-we-do/