new article about gold http://www.armstrongeconomics.com/archives/35296
@TPTB: can you explain what armstrong exactly means by "deflation" ? at college i learned it was the decrease in price. i know some use it as a decrease of the monetary supply too. but armstrong use a totally different definition, and from what i gather from his latest article on gold, it something like a decrease in the monetary supply available to someone
for him, it seems an increase in taxation implies deflation
can you expand on this ?
@TPTB: can you explain what armstrong exactly means by "deflation" ? at college i learned it was the decrease in price. i know some use it as a decrease of the monetary supply too. but armstrong use a totally different definition, and from what i gather from his latest article on gold, it something like a decrease in the monetary supply available to someone
for him, it seems an increase in taxation implies deflation
can you expand on this ?
Wow! Armstrong confirms the low in gold will likely be in the $600 - $700 range! Yikes
Armstrong wrote recently how that near the low, even the former bulls are borrowing gold to sell it short, which is what drives the extreme low.Ditto BTC, they will sell that fucker short down to double-digits. You've been warned. Once the momentum gets rolling to the short direction, you will see the same overshoot to the downside that we saw on the overshoot to the upside to $1000+ for Bitcoin. It wasn't easy to borrow short on the way up to $1000+ which may have contributed to why the price was able to overshoot so much. Now it is very easy to margin sell short with one-click on bitfinex and if you don't exchange fiat in or out of bitfinex then apparently you don't even need to give them an id (no KYC in that case apparently). I can't offer any assurances on the stability of bitfinex policies nor on whether they can remain solvent in a market that moves too fast.
Want some free money? Short gold and BTC with a several month timeline.
Looks like week of Aug 10 will ensue the big sell off in gold (and probably also Bitcoin):
By deflation he means that deflation is not confined to a decline in prices (which itself isn't even confined to only be caused by contraction of M or V in the Quantity Theory of Money), but also can be due to a contraction in economic activity caused by debt overload and its ramifications such as government raises taxes to gain revenue to service the egregious debt load.
Stagflation (de-inflation) can occur when the economic activity is contracting and the production of certain goods is contracting faster. This can happen for example because China was doing all the world's manufacturing and was operating on negative profits due to carry trade in debt, so when the tide goes out we see that cost of manufactured goods was the most naked.
Edit: add the timing on the collapse of the Euro:
This exhale on Greece will be very short-lived. The episodes of calm will become shorter and shorter, and volatility will increase and increase. October is the BIG BANG.
P.S. Note I prepended to my prior post.
Edit: I maintain move to dollar cash until after October. Then on those lows move to dollars, US stocks, gold, and crypto. After 2017, my only hope is on crypto. After 2020, try to invest in Asia if you can hide it from your home countries' capital controls and virtual/proxied internment of yourself where ever you may roam.
Edit#2: Armstrong's computer model for the Euro chart points to a big event in September (the Composite bar at top row) with Volatility increasing in August after quieting in July which will be very significant Long-term and Directional change in September:
I believe he called for 0.85 level so perhaps it will break down through to the lowest purple trendline sometime between November and January. Note the bright yellow Trading cycle in February, so that might be the low for the Euro?
P.S. Note I prepended to my prior post.
Edit: I maintain move to dollar cash until after October. Then on those lows move to dollars, US stocks, gold, and crypto. After 2017, my only hope is on crypto. After 2020, try to invest in Asia if you can hide it from your home countries' capital controls and virtual/proxied internment of yourself where ever you may roam.
Edit#2: Armstrong's computer model for the Euro chart points to a big event in September (the Composite bar at top row) with Volatility increasing in August after quieting in July which will be very significant Long-term and Directional change in September:
I believe he called for 0.85 level so perhaps it will break down through to the lowest purple trendline sometime between November and January. Note the bright yellow Trading cycle in February, so that might be the low for the Euro?