The thesis of this blog is that back in 1997 a man, who went by the name ANOTHER, had the wisdom and such a high vantage point, the height at which leaders view the scene, that he was able to see what was coming and share that view with a few people. And sometimes, when you are really high in the mountains, things are farther away than they appear.
On Wednesday, November 5, 1997, Another laid out a scenario which he saw happening specifically within a 30 day time frame. Remember, at that time the price of oil was his trigger. It may still be, but as I said in a previous post, we are now awash with potential triggers.
Here's the quote:
At this moment in time and space, the price of oil in US$ terms is about to roar! It will crush the Pacific Rim and South America. It will drive the US$ sky high in terms of other major currencies but the dollar will collapse in terms of gold! Short term interest rates in the USA will be driven thru the floor much the way they have been in Japan from the early 90s. This will be done to combat a imploding equity market. Long government bonds will almost stop trading as their yield soars from the oil price fears of "inflation"! Because of todays "new digital paper markets" this entire act will be played out in 30 days or less. Yes, you are right! During that time we will have inflation and deflation. - ANOTHER
I think we may have finally arrived at the beginning of that 30 days.
That is a bold statement to make on the eve of an historic vote by Congress, but I don't think it makes a bit of difference which way the vote goes. Sure it makes a difference for the future of freedom and capitalism, but not for the future of physical gold.
And on the subject of inflation and deflation, this is a short post I made on another site explaining how inflation and deflation go hand in hand.
Just my two cents on Inflation/Deflation. If I buy a house on a street with 5 houses for $100,000, then later someone buys a house for $200,000, all of a sudden, all 5 houses are worth $200,000. My net worth went up $100,000. The street's net worth went up $400,000. But 400,000 dollars were not created. Asset inflation happened.
Asset deflation is happening now, which is the reverse effect. If I bought a house for $500,000, and now someone sells for $250,000, then all the houses on the street are now worth $250,000. So the net "loss" to the street is $1.25 Million. That is deflation.
This is happening with all types of assets, things that were assumed to be good investments. But as we bail them out, we take some of that phantom net worth, like the $400,000 in the first paragraph, and make it real, spendable cash.
That cash is no longer going to go into bad "assets" that were previously thought to be good investments, it is going to go into real things, like gas, oil, gold and milk. And because it is newly printed spendable cash, it is going to bid against the previously existing spendable cash. That bidding process will cause the cost of real things to go up. That is inflation.
So we can have both asset deflation and real world inflation at the same time. Necessities will cost more. Luxuries and Mortgage Backed Securities will cost less.