"we will provide additional support.”’bernanke, page-24

bregitta

if you believe deflation will win the day (and there are a lot of gold bulls (including me) that think this is indeed a great deflation vs QE game - so best you speak for YOU and not for some straw man you put up)... anyway, if you believe delation will win the day, then your position is that all cash and no assets is the best investment position.

Are you all cash and no assets? Because in deflation everthing goes down.

I actually think in the mess we are in, that a half cash and half gold is a good way. I have posted that for a couple of years. The reason gold (in AUD) is good is that it has performed OK in past deflationary periods.

And against that 'can perform ok in the mess' I think the QE may come back and/or other money printing and for sure, zero interest rates will say forever.

Between 2001 and 2009 there was no QE... just very low interest rates (that is very negative real interest rates) that pushed gold along.

If deflation wins... it will be a big QUICK mess. If inflation overpowers deflation, then gold is OK again.

Who knows what will happen. Maybe tomorrow Ben will wake up and and say APRIL FOOLS. I actually think Ben will honour his word and slowly stop QE by the end of 2014. But, in the place we will have a global flat-nothing-nogrowoth-zero interest rates-some inflation economy FOREVER. That environment is good for nothing. But the ZIRP with some inflation will be good for gold.

But, as I have said before, there can be NO BLACK SWAN allowed. The world will collapse then.

Pretty much, when you post, it is unwise to do

1) my opponent thinks THIS (you set up your opponent as a straw man with a silly premise)

2) then you proceed to say how dumb your opponent is... and your opponent did not even speak!

I find it strange, as I have said before, how gold bears are happy, gloat over the pain on others. Very strange. If BHP crashed, then I would not head to the BHP forum and tell the holder how dumb they are. You bears are an interesting, anti social, pessimistic mob. I wonder why?