Sunday, July 31, 2011
31 July 2011
Well, the Bradley Siderograph turning point (was it for gold, or stocks or bonds? We'll see) has come and went. It appears that there is some sort of debt "resolution" that has taken place over this weekend. In a few years, we'll have to raise the debt ceiling again. This is the problem with money loaned into existence. It always takes more money than currently exists to pay the interest on what does exist. Think about it. It causes the monetary base to need to grow exponentially.
I'm not sure where we head from here. I'm not buying yet because I still think there will be a shake out even if we bounce hard tomorrow. I'd like to see my short term indicator bounce positive and then trend lower to make a higher low than this one before I'd buy anything.
"Paper money eventually returns to its intrinsic value - zero."
"To see what is in front of one's nose requires a constant struggle."
at 10:29 PM