phar lap and subarus, page-3

Chucky as regualr reader will know I have not problem with gold.

Gold equities though are complete donkeys for this race

There will be a time when the time to buy comes, but not now , its absolute folly to believe that equities will hold up through the coming storm of GFC2

I would suggest that folks just dont lose faith in fiat they will pretty much lose faith in just about everything

The simple way to think of hyperinflation is as a glut of money, the simple way to think about deflation is a famine of money.

Anyone expecting a glut of money doesnt understand money, the only way to print money into existence is to print it and lend it. When there are no credit worth borrowers and very few who want to borrow anyway and even fewer willing lenders then you get a scarcity of money.

When the debts are as high as they are money rises in value compared to asset, it becomes scarce as folks cannot earn or borrow it. This forces them to sell asset to pay their debts and costs.

The borrowing, the fiscal easing is running out of puff, the hyperinflationists are having their last meal before they walk the mile

There will be a time to buy equities but not at this over blown levels, the time to buy the spec will be when they are ultra cheap.

In the meantime by all means hold gold