Which way will it go?

Dollar’s bouncing a bit, yet oil remains at record highs. Gold is consolidating, getting ready for its next move. Which way will it go?

Meanwhile, the DJIA has held my major support level at 12,795. Could stocks start to play catch up with other inflating assets? After all, US stocks in general have already been in one GIANT STEALTH BEAR market, losing more than 75% of their value in real terms in the last eight years. 

On a separate note, I received a question yesterday about the Great Depression and whether or not I thought the gold standard back then contributed to the depression. My answer: Absolutely! The gold standard prevented Washington from pumping out money and credit. They were handcuffed by the gold standard. 

Today, they are no longer tied down by a gold standard. So they are free to create money and credit at will. That does not mean we can’t have a depression. It merely means that instead of if it being a deflationary depression, it would be the opposite, an inflationary depression. 

Comments?

1. Veteran analyst Richard Russell seems to agre… Richard Russell, who lived through the Great Depression, writes the following in the November 26 issue of his newsletter, “Dow Theory...
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