This is the truth, nothing but the truth, and the whole truth, with a waterboard as my witness!

Friday, December 12, 2008

Colin Powell and Gold

Powell, who says he still considers himself a Republican, said his party should also stop listening to conservative radio talk show host Rush Limbaugh.

I have said numerous times that I remain a conservative. But the GOP has some real identity questions. There is a segment of the GOP that is the thinking voter or independent. The voter demographic college educated and higher income, who reads the news and does not get it from Rush Limbaugh. These people understand the complex nature of challenges that we as a society face and the damger of demagoguery. I understand the sentiment that Powell expressed and have seen nothing to indicate that the GOP "gets it."

I recall the Catholic Church meeting and coming to the conclusion that abuse required counseling, I mean in an effort to self-examine themselves they initially concluded that counseling was the answer, and then.. missing the point... did not choose criminal reporting of the act. It will be interesting to see how far down the GOP must go before change is forced upon them.

Speaking of going down, Gold is next. I differ with Rogers and feel that demand will continue to erode and that capital to purchase gold will erode. Short-term I see a looming drop in prices and see the supposed holders of physical gold in loss aversion. The arguments and explanations get more bizzare, but in a deflationary market gold goes down and buying stock in Walmart as an example or Dollar General, even Redhat software makes more sense.

In both cases, with making an assesmnet of the circumstances it is interesting to see how some insist that the message was not heard or understood instead of the message rejected.

On an Elliot Wave pattern (which might be appropo for bubbles, speculation, and emotive markets) with no connection to earnings.. as an example Walmart produces earnings.. gold does not.. it is static trade out of earnings and hedge to inflation, then as this deflation rolls on.. It is going to take the real ass-burn here soon.

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