OT. Looking forward 3 monthsDid you guys here Jones today talking about the greenback slide? Next 2 months the $ will take a beating followed by a series of actions that won't help it leading to much greater declines. The reality is that the money pool is so inflated that any attempt to peg it to gold requires massive curtailing. Suzuki says we are in the 59th minute of an exponetial 60 minute clock with respect to population growth and the environment. This holds true for the growth of the monitary pool size too. Interest rates are zero because when you have interest the pool grows. The problem is that it is so big that even a small increase causes massive increases. This does not halt inflation!
When you look at how much "wealth" is created in the "wall streets" it doesn't take a genious to figure out something is wrong because those "wall streets" produce absolutely nothing. With 70 trillion dollars of nothing floating around it's clear that it will land somewhere eventually and when it does... I've been generously calling for this crash to happen this fall but some of the people whos opinions I respect have reduced the window of safety. I have to agree with them. I expect the world will try pull a new rabbit out of the hat to hold this off but I just don't see what they can do. This worries me because we need to be out before it gets ugly.
I would be happy to accept less if it means getting out on time. I wonder if the insiders are keeping in tune with the goings on and see the problems coming. Gold is proving the true state of fiat currencies. $2500 before fall isn't that whacked out. For this reason I plan to increase my gold producers holding steadily towards the fall. NewGold and Yamana look promising for mid tier. I like NewGold because of the local production. I also have Bakerville 60 miles away and even though they were a pump they are a producer. I plan to localize my investments because if there is an outright crash I will own the banks backer. Few people know that their towns had local dollars whether in gold backed paper or notes of exchange of some sort. Even as primative as IOU's recognized by the local feed store. These where the intermidiate step to a unified currency in the fronteer towns. In Naniamo they have a road called Jingle Pot. Named so because you could here the miners pots of gold jingle as they came into town. I kid you not. Gold could be exchanged fo mint or goods.
If we get beat back a hundred years there will be some sort of medium of exchange and gold is likely it. I don't expect the rich to sit by and watch their paper become worthless. I expect the rich to migrate towards strength. I trickle at first but eventually a flood. Watch gold climb and the gold space get crowded. During this decline I expect ebb and flow. Take the ending of the QE's. Wall street will probably like it until the cash registers start emptying. Then the won't like it. And so on. Look at Encana. Nat. gas isn't doing them what oil is doing for the former parent. Well, Nat. gas is used for fertilizer, heat and some autos so why isn't it being used to directly counter oil? Simple, there isn't enough time to make it a darling through demand so the investment money runs to oil for protection. As countries destabilize the safe places for money will become crowded. Look at the inflation effect on the CAD. Tell me that isn't worrying.