Adrian Douglas: The Y2K+8 deflation hoax

2a ET Saturday, August 15, 2009

Dear Friend of GATA and Gold:

GATA board member Adrian Douglas, editor of the Market Force Analysis letter, argues in his latest essay that the current deflation scare is as phony as the scare that enveloped the world at the changing of the millenium. Douglas' reference to the astounding buildup of derivatives is especially important to investors in real things -- the price of which derivatives were invented to suppress.

Douglas writes: "The derivatives market serves as a phantom offer of future supply of commodities and a phantom bid for U.S. Treasury debt. The fact that since the credit crisis the derivatives market has dropped in dramatic fashion means that as it unwinds the opposite effect should be observed: namely, higher commodity prices and higher interest rates. This is already becoming an obvious trend."

Douglas' essay is headlined "The Y2K+8 Deflation Hoax" and you can find it at the Market Force Analysis Internet site here:

http://www.marketforceanalysis.com/index_assets/The%20Y2K%20plus%208%20D...

Or try this abbreviated link:

http://tinyurl.com/pzoq7v

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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