WHY GOLD DOES NOT NEED INFLATION TO GO UP, AND WHY THE DEFLATION OF THE REAL ESTATE BUBBLE MAY VERY WELL PROVIDE ALOT OF BUYING POWER FOR GOLD
I do not believe that the U.S. or Europe will go into a serious recession in 2006, although higher oil prices may cause U.S. and European corporate profits to rise very slowly, or even be flat in 2006. Retail sales will not collapse but they will definitely slow.
Higher oil prices will not rapidly give rise to a major recession and inflation like they did in the 1970’s for 4 reasons.
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