I wouldn’t buy any stock if I were you. I’m still short the investment banks in the United States. Some of them may survive, but why bother.
One reason the banking system is frozen up is because nobody trusts anybody.
On rapid decline of commodity prices in 2008:
We’ve had a period of forced liquidation of everything. It doesn’tmatter about the fundamentals. You’re getting margin calls, you’re getting redepmtions, you’re losing your credit line. So you have a forced liquidation of everything. Even the US Dollar is going up because all the shorts are being forced to cover.
But the fundamentals of commodities are improving during all of this. Farmers cannot even get loans for ferilizer right now. Nobody is getting loans to open mines.
On the US dollar defying gravity:
I expected a rally last year in the dollar. I thought I would get out of all my dollars last year on theÂ rally – i didn’t because it has been much stronger than i expected. there has been a massive forced liquidation. There have been huge short positions in the dollar and everybody is having to cover. I havenot sold the rest of my dollars yet.
where oilÂ is Â heading:
The oil decline [production] has been going for some time and its going to get worse. what’s going to happen to oil this year? again, i am not a market timer or trader. I know that the IEA recently came out with a study that the world’s oil reserves are declining at a rate of 6.7% per year and that’s after discoveries. So, it doesn’t take much, in 15 years there won’t be any oil available at any price.
And as far as gold is concerned — i bought some more gold today. If gold goes down, I’ll buy more. If it goes up, I’ll buy more.
I’m buying gold because i do expect it to be much higher over the next decade.
I do know that we’ve never had a period in world history that we’ve never had a central bank print money as fast as they can.
If the IMF sells their gold then gold could go down a fair amount. But that would be the bottom. I hope the IMF does sell their gold because we would get a low price for gold and then we could get rid of the IMF because then noone else is going to give them any money and they would have to dissolve.
Mac Slavo Views:
Read by 29 people Date: February 11th, 2009 Website:www.SHTFplan.com
Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.