Gold collapsing. Bitcoin UP.

[cypherdoc]

here's the 1 min version:

[N12]

This spike wasn’t even accompanied by any unusual volume.

[cypherdoc]

This spike wasn’t even accompanied by any unusual volume.

you see this crap all the time now with computerized trading.  and then one day, it never comes back up.  i suspect at some pt Apple will gap down, trapping everyone up at the top.

[cypherdoc]

http://www.zerohedge.com/news/skynet-now-cannibailizing-itself-bats-ipo-flash-crashes

Skynet

[cypherdoc]

more on Apple:

http://www.zerohedge.com/news/fat-finger-halts-unhalts-aapl-shares-which-hit-54280

[cypherdoc]

KB Homes getting punked after poor earnings -10%.  sorry, there is no recovery; at least for the American people.

[N12]

BTW, what are your thoughts on EUR if you have any?

[cypherdoc]

BTW, what are your thoughts on EUR if you have any?

i think its getting ready to take another plunge.

[N12]

Now the question for us Europeans would be what will decline more, Bitcoins or Euros?

I sure hope EUR. On a long enough timeframe anyway.

[cypherdoc]

Now the question for us Europeans would be what will decline more, Bitcoins or Euros?

I sure hope EUR. On a long enough timeframe anyway.

i've told you many times; i'm not worried about Bitcoin.

[N12]

Now the question for us Europeans would be what will decline more, Bitcoins or Euros?

I sure hope EUR. On a long enough timeframe anyway.

i've told you many times; i'm not worried about Bitcoin.

Me neither, it was just a rhetorical question.

I’ve actually become very bullish the past few weeks. Good things are brewing up in my view. Once we bottom, I can see a recap of 2011’s spring coming. Early adopter times.

[cypherdoc]

Now the question for us Europeans would be what will decline more, Bitcoins or Euros?

I sure hope EUR. On a long enough timeframe anyway.

i've told you many times; i'm not worried about Bitcoin.

Me neither, it was just a rhetorical question.

I’ve actually become very bullish the past few weeks. Good things are brewing up in my view. Once we bottom, I can see a recap of 2011’s spring coming.

yes, i think the ramp is coming too.  i do think $4 is the new $2.  the Bye Bye $4's was too early but i forgot to factor in a roll of stocks and Apple.  i still think Bitcoin will be resilient enough to withstand the deflation.

[miscreanity]

do not get trapped into buying paper pm's on today's bounce.  stocks are continuing their downturn which is the beginning of a new primary downtrend which will take them way lower than anyone expects.

pm bounce today was expected and could continue very short term but then will turn down viciously again.  deflation is here.

Fixed. Also:

The implosion already occurred, and the reaction was exactly the same as in other instances of deflationary deleveraging. It may have been executed via differing means, but the end result is still at least $1 trillion (that we know of) in liquidity dumped into the same type of financial shell structures that we see in JPM, et al.

Do you really think further defaults will be met with the restraint that was so lacking this time around?

How long do you think it will be before the funds from the Euro bailout (which were no doubt multiply levered up after being supplied) flow into real assets - six to nine months? That's monetary inflation, and it won't do a thing to stop real deflation.

You're so focused on deflation overall - it isn't one or the other, it's both at the same time. Think non-linearly.

KB Homes getting punked after poor earnings -10%.  sorry, there is no recovery; at least for the American people.

^ Real asset deflation.
v Monetary inflation.

Since the beginning of 2012:

Date	Gold	USDX
Jan	1575	79.6
Now	1660	79.3
	+5.4%	-0.4%

[cypherdoc]

You're so focused on deflation overall - it isn't one or the other, it's both at the same time. Think non-linearly.

you're using my terms again  

i'm only focused on deflation NOW.  what have i been doing ever since the 10/6/11 bottom call i made?  answer:  focusing on inflation.

but now thats over.  the markets alternate cyclically btwn inflation and deflation.  and it won't matter if they print during this downphase.

btw, Apple taking the dump...

edit:  i also think in multiple time frames.  from 2005-2011 when i owned gold and silver, i was thinking inflation.  the longer term cycles indicate we're about to enter a long deflationary phase.

[cypherdoc]

[bitcool]

Oh my.
Those deflationists have never stopped amazing me, for the past ten years.
I think they are good for a healthy pm bull market though

[miscreanity]

you're using my terms again  

i'm only focused on deflation NOW.  what have i been doing ever since the 10/6/11 bottom call i made?  answer:  focusing on inflation.

but now thats over.  the markets alternate cyclically btwn inflation and deflation.  and it won't matter if they print during this downphase.

btw, Apple taking the dump...

edit:  i also think in multiple time frames.  from 2005-2011 when i owned gold and silver, i was thinking inflation.  the longer term cycles indicate we're about to enter a long deflationary phase.

You noticed

No argument on the cyclical shifts between inflation & deflation. I'm pointing out the lack of distinction between monetary and real assets. Applying only real asset thinking to gold (appropriate for paper contracts) while it's acting primarily as a monetary asset (applicable to physical gold) produces a flawed representation: assumption that contracts are the same as the underlying physical gold.

Printing hasn't mattered since day one - it only creates an illusory smoke-screen. It won't matter any time they print. What will matter is how real assets with monetary functions behave in relation to normal assets. Take fiat as baseline and look at real assets in general. If you lump gold in with real assets as "just another commodity", then virtually all assets were rising in value relative to gold, which was falling.

A grossly-simplified visualisation:



The deflation occurring in real assets relative to gold is independent of fiat. If fiat were abandoned entirely, the same situation would remain. Printing is a reaction to this circumstance in order to maintain relevance and control among established, fiat-dependent systems. What fiat has done over time is distort the relationship between gold (in its monetary capacity) and real assets. Critical to note is that fiat as monetary foundation is inherently destabilising, unlike gold (or Bitcoin).

If things really were getting better and authorities showed a genuine measure of responsibility, I'd agree with you on gold and sub-$1500 expectations. For now I'm still amazed that such an intelligent individual can give Bitcoin monetary credence, yet not gold. The only functional difference between the two is their physical nature (or lack thereof).

[silverbox]

I like and hold both Bitcoin and PMs.  I expect that it is more likely than not that both will at least hold their own over the coming few years.

Ditto.

[bitcool]

If things really were getting better and authorities showed a genuine measure of responsibility, I'd agree with you on gold and sub-$1500 expectations. For now I'm still amazed that such an intelligent individual can give Bitcoin monetary credence, yet not gold. The only functional difference between the two is their physical nature (or lack thereof).

+1
I think if severe deflation really takes hold, Bitcoin will take a bigger hit from King Fiat than gold does; As in 2008, US government and Fed world governments and CBs have shown their ability and determination to prevent severe deflation from happening.

Bitcoin's ultimate success to a great degree depends on hyperinflation of major currency(s), which seems unavoidable IMO.  

[S3052]

As in 2008, US government and Fed world governments and CBs have shown their ability and determination to prevent severe deflation from happening.

It's over. The next time goverments will fail to prevent deflation. In fact, the have already lost this battle.