iTulip 2008 year in review

Next — and last — on the list of reviews/previews worth reading is Eric Janszen’s 2008 review in pictures and 2009 forecast.  Unlike McCulley’s, the iTulip guy’s jokes are actually funny.  Plus he has lots of cute pictures.

As near as I can tell, the iTulip guy has been right about pretty much everything for the past ten years.  And he thinks we are headed for inflation, not deflation; period; full stop.

In 2008, the Fed continued to confound the forecasts of anyone who believed in the inevitability of a deflation spiral in the US as the inexorable outcome of the 1980 to 2007 credit bubble that grew during the FIRE Economy era. They contended that there are statutory limits to poiu8iuthe [sic] Fed’s and Treasury’s largess. Our contention is that there are no rules, no limits, and even those that do exist will be thrown out the window to expedite a desperate attempt at asset price reflation.

If I read him correctly, he thinks the Dow Jones Industrial Average will reach two ounces of gold before this cycle ends.  So Dow 5000 + gold $2500 or Dow 12000 + gold $6000…  Or something like that.

But perhaps not within the next year.  Janszen also says that where to invest going into 2009 is a lot less obvious than it was going into 2008.

I agree.