 A Time for
Caution, Update 1
Bob Moriarty
Archives
Mar 17, 2008
I wrote a piece 10 days ago
suggesting caution on the part of my readers. Gold and silver
are at bullish extremes; the dollar is at a bearish extreme.
In any normal time, we would expect to see a correction, probably
violent. I still believe we will have a correction shortly but
we may no longer control anything. While the metals and the dollar
are showing extremes of emotion, the shares of mining companies
still seem to be very bullish based on my read of the
XAU over gold.
My readers are smart enough
to realize we are not in normal times. We are in a Domino Depression
where we can expect two or three hedge funds to collapse every
day, banks to go under on a regular basis. Northern Rock collapsed
last fall, I for one, cannot understand how the rest of the banking
system has not failed.
It's starting again; we are
in uncharted waters where no one quite understands where we are;
we've never been here before. Bear Sterns crashed on Friday last.
On Monday March 17th, President Bush meets with the infamous
Plunge
Protection Team. The alternatives are everything from a Bank
Holiday to a nuclear attack on Iran to Bush declaring a "National
Emergency" and naming himself Fuhrer.
One of the very real alternatives
is Weimar style inflation. That's what the government would like
to do; it's a question of if the rest of the world will go along
with it. All it would take for a total and immediate failure
would be for China or Russia or Japan or Saudi Arabia to dump
the dollar.
It's a time for caution. We
SHOULD have a violent correction in gold and silver and the dollar
based on emotion and government intervention but we could see
$3,000 gold in a week or the start of a living nightmare brought
to you by the Gang of Fools in Washington. No one knows.
I'm tempted to say the government's
ability to deceive is far greater than I ever imagined and the
stupidity of Americans equally unimagined. We may well coast
into Armageddon at a nice measured rate or we could see a freeze-up
next week. The time will come when there is a total freeze-up
in the banking system and all the banks will close. I just don't
know if it's next week or not.
It's a time to be cautious.
We are not entering a recession; it's a full-blown Domino Depression.
It's not a time to be in CDs or Real Estate or speculating in
the stock market. You need to own real things of some real value.
Our world is changing at an ever-increasing rate. Own some physical
gold and pay attention to what is going on.
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Mar 16, 2008
Bob Moriarty
President: 321gold
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321gold Ltd
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