I believe that if I eat carrots we will have a recession. Sooner or later I will be right. But not this year, I’ll bet.
Your chart show people flocking to the safe haven of gold AT the onset of bad economic news. DUH. Then, after making profits and figuring out that the world really isn’t going to come to an end they start selling before the recession is over. DUH.
Similarly, when energy gets expensive enough it can put the brakes on a weakening economy. Once the recession starts lower energy demand leads to lower oil prices. DUH.
I was living in Tokyo, during the 80s, and early 90s....the mumma-sans stopped buying in the late 80s, and the Japanese economy hasn't recovered since...an example is Cyprus, if one looks at the economy over there, at one time Cyprus was a vibrate economy, then they started to lose heavy industry, and farming, and the economy moved into a service industry...and of course, there is no money flipping Macs...and is dependent on consumer spending...
Yay. Oil and gold are headed toward affordability.
Soros? I don’t know. But I do know Goldman Sachs was involved. And since they have had one of their own in the White House under Paulson and then Geitner, don’t expect any investigation. The White House doesn’t want people to go into gold.
What comforts me is to remind myself what I believe? Do I believe the economy of the world justifies stock prices? No.