*interest rates rose violently in the big Gold Bull market of 1968 to 1980 first quarter
*An example is if a company was on the brink of bankruptcy on a balance sheet basis, but found a banker in a lunatic asylum to lend it money. This borrowed money was then used to pay an increased dividend. Do you really think with the investment world knowing this company was in chapter 11 based on significant balance sheet problems that they would rush in to buy the shares? Some numnuts might, but that impact would be extremely short term and would not under any circumstances reverse the bear market in that company.
A currency is always the common share of the country it represents.
*What you see here is fact. There are no mitigating factors today that can skew what you have reviewed. The historical view you have just seen will repeat now and into 2011.
What you reviewed makes me feel I am being too conservative on my expectations for gold.
Now post this on every web site and chat board you can find. No need to give any credit for where it came from, just post it everywhere on the planet. Maybe a picture will penetrate their thick heads. Maybe they will then realize we have just experienced our first market charade of major proportions by the US fed in concert with other central banks in a stealth attempt break inflationary expectations.
You cannot break inflationary psychology unless you introduce policies that have that ability historically validated.
The cost of money now compared to the size of the Bernanke Helicopter Drop of international liquidity means that rates will have to exceed the level of 1980 in order to have any impact. That is a long time ahead, a much greater increase in the price of gold and many adventures from now.
