globaleconomicollaps

I got my first job in systems administration back in 1996. I was a near total flub. Many would say I still am, but at the time having a background in basic UNIX was enough to get you a job and work your way up the ladder. Now we have reached a level where people are so sophisticated, that there are shows like this:

http://hak5.org/episodes/haktip-53
It just makes my eyes pop out. They are using this stuff ...

I saws EJ's analysis today of the gold action. I thought it was pretty good. Using my (admittedly not too accurate model), I tried to project a bottom for this year. This is my % deviation model:

the most the gold price has ever departed from the model is 21.6% on 24-Oct-2008 during the financial crisis. I surmised that we where seeing another financial crisis and that gold might reproduce it's drop.
This is a graph showing what would happen if gold hit it's previous maximum ...

A few months ago we met with an accountant to do taxes. He told us not to buy gold because it is too volatile. I wanted to say "No it isn't!", but I didn't know how to prove it. I researched the slippery concept of volatility and found this terrific paper:
http://www.financialmarketsjournal.c...volatility.htm
The method is pretty simple and I put together a graph showing volatility for gold and the Dow:



Note that ...

This is a chart showing the bow shape of the gold price in Euros over the last 10 years.


Note the euro/dollar parity and the pound/dollar parity. It is too late to stop the Euro move. It would require a new EU wide austerity move and an end to central bank intervention. The opposite is happening.

You can see that the euro function is a curve. On a log graph exponential functions are straight lines.

reading over Jesse's blog today I saw him link to Max Keiser interviewing Gonzalo Lira.
http://jessescrossroadscafe.blogspot...o-lira-on.html



Lira states "Spain needs a 20-30% devaluation of the euro to recover from the crisis". This doesn't seem to me to be supported by the facts, but I want to remind the reading audience that I have predicted exactly this: ...