Friday, November 6, 2009

Dueling Parabolas

The fractal long range forecast for gold is basically a parabola. A long while back, before gold was anywhere near $1000, David Nichols of the Fractal Gold Report drew this result of his fractal analysis for gold's future: (click to enlarge)

I have added the note about the resistance level we have just now broken smack dab centered on the parabola drawn when gold was at $734.50 an oz. This analysis is from pure geometry and physics, which know nothing of idiots in Washington or fools on Wall Street. But they have their parabola too!

I suppose a lot of the debt increase of the 80s can be blamed on Reagan's cold war deficits. But we won the cold war, and in peace-time, debt could have come back to sensible levels. Instead, a new war developed. We were invaded by an army of wiz kids on Wall Street creating and slicing and dicing mortgage debt, and peddling and juggling it to no end. They started their parabola in the early 90s. Gold started its parabola 10 years later in retaliation. Gee, I wonder if the two parabolas could be related?

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