We are in a very fluid period, which can be confusing, yet it is important to comprehend that NOTHING but NOTHING is ever PERMANENT. On the one hand, gold will eventually decline for its final low on the benchmarks. The only thing that will call that into question is a Monthly Closing ABOVE 1350. Yet, gold is rising WITH the dollar.
This paradox centers around a simple game – who has the confidence now. Since the confidence is fleeing Euroland, then capital and confidence will move into dollar and Swiss franc. This means that gold will rise WITH the dollar and franc as a HEDGE against the Euro.
However, we will eventually reach that point more-likely-than-not on the benchmarks where the shift in confidence will take place and gold will then rise AGAINST the dollar. After the confidence has crashed against everyone else, then it will turn against the USA. This is when we will thereafter see the next solution as a one-world reserve currency.
This is a CONFIDENCE game. This is why I named the ECM the Economic Confidence Model. Relationship fluctuate back and forth. Even looking at the Silver/Gold Ratio illustrates my point. There is nothing PERMANENT – we are always in a state of constant flux. The vast majority of “analysts” are always wrong because they are trying to apply a standard unchanging theory (linear) to a dynamic world (non-linear). They will be correct only like a broken clock twice a day for a brief second.
This is the entire purpose of Socrates – to monitor an extremely complex dynamic world that is not Artificial Intelligence, but something that is BEYOND human capability. Converting this system to be accessible via the Web has been a huge challenge. This is my personal goal and the purpose to go public is to protect it from falling into the hands of just one entity. When we launch, hopefully people will see this is not just decades ahead of anything out there, it is demonstrating the world is dynamic and we do really all need each other.
I believe this is the only way society hopefully can advance taking that one small step for man one giant leap for mankind, to quote another Armstrong. I have stated countless times this is not my theory, it has been my discovery. Socrates has revealed the world to me – it will soon be time to reveal it to the world.
So to those who are in awe that the forecasts on this blog have been so correct on so many markets consistently, please keep in mind – I am not super-human. This is the accomplishment not of my opinion, but my dream. There is a new way if we can get past the human bias and prejudice.
