Please explain what the consequences of the yen continuing to fall and what happens when it bottoms in your view?
It is Armstrong's view that Japan will bottom this year which will mark the shift of world-wide capital moving over to Asia, that will be the final blow to the demise of the west and Asia as the new center of capital. He has also stated that the deflation we are seeing is because of the housing debacle of 2008, it is like a big pendulum and will start to move to the opposite side soon which will see gold moving up again, eventually to 5000 by 2016.
If OGM thinks this debt crisis is finished he is wrong, the debts are not being paid down they keep ticking away, world-wide debt is now approaching 50 trillion dollars and growing by 342,000 dollars per second! 70 percent of the us 16 trillion dollar debt is compounding interest payments to the bond holders, eventually the debt will suck up 100 percent of economic output and the system will collapse.
Obama hunting down the productive members of society to grab their money to feed the debt hole is just going to cause the velocity of money to collapse. Anyone that thinks they are going to magically pay this beast down is the real cultist, this is the legacy of Karl Marx, big government that intervened in the economy and put off paying the credit card down. This is the largest transfer of wealth in the history of the world. It will be the total loss of confidence in government, its debts and currencies that causes goid to soar, because gold cannot be printed, gold will become an underground currency in Armstrong's view.
FWIW, I don't consider gold the primary instrument on this flight.
It's the $Yen.
That's the one you have to figure out.
Everything else will fall in line.
