Seems like an age since Gasman first gave his Theory of Everything (TOE) a public airing here at the freemensch. In reality it was March '09 which is seven months ago. I thought I would revisit the topic today because October '09 is a very significant month in Gasman's TOE. It is the month that interest rates are supposed to start increasing. This being predicted by the advance in the gold/commodity ratio that commenced 15 months ago. We have a few more months of data now so that the future trajectory of interest rates can be further addressed by the theory.
It is also, I think, fitting to do this on October 29 because it is the anniversary of some significant events in the past. In particular I remember October 29 last year when my conviction with regard to certain junior gold mining companies was tested almost beyond endurance. Actually I think I did add some XRA this very day on the grounds that if you feel physically sick from fear it must be a good day to buy. Of course I had to ask Mrs Gasman's permission first. But that is another matter.
What is a Theory of Everything worth that is not put to the test. All the better for Gasman to be subject to the public ridicule he so richly deserves when the exact opposite comes to pass.
Here is my prediction in a chart.(click on it for high res)
The red line is the gold price and the blue line is the CCI adjusted by a "factor" that you can only find out by reading Gasman's TOE. Together these predict the IR 15 months in the future. Now that I have more data I can confidently predict that interest rates (basis the AAA corporate bond yield) will peak at 8.6 % in May 2010. Of course if the gold commodity ratio advances again that 8.6 % may turn out to be only a way station.
There you have it. When I first aired Gasman's TOE I think I may have mentioned that Mrs Gasman wanted a new car and that I thought a Ferrari might be nice. Maybe Gasman's TOE would provide. Well she tried one out and found it a little unrefined for her taste. Thats good 'cos the SL will be a lot easier on the pocket book and I wont have to take as much risk.
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