RE: RE: what will happen if the US economy recover The only way for the economy to "recover" to allow it to stop spending more than revenues (taxes) account for. This will require HUGE spending cuts and raising taxes. There is no other way...none, nada, zilch. This MUST happen. So, in order for this to occur, the US economy must enter a painful deflationary period. Do you think politicians will allow this to happen to the people that vote them into office? If they do, they will no longer be in office. More likely than not, they will continue to "kick the can down the road". In other words, politicians opt for printing more money to pay the bills of government as well as attempting to push off a recession. The smart ones know this will only work so long. Ultimately, we will get to a point where all the printing of monopoly money has devalued the dollar so much that a "financial event" will either be averted last minute, or we'll enter the point of no return, and the US financial system must reset itself (this would be BAD times, as in a new Great Depression). Regardless, the eonomy will NOT recover until we have hit this wall. I don't care if you're Democrat or Republican, they will follow the road of lesser pain until we run out of road. The road of less pain is at the very least inflation, and lots of it. Possibly hyperinflation. In this situation, gold and silver will soar further. When the wall is hit, it turns in deflation, and lots of it. We have a lot of debt to either pay down, inflate away, or reneg on. This will require either a long, slow painful process to recover from, or a shorter, very painful process to recover from. In deflationary periods, historically, gold is a beacon of safety as well. Check out the prices of the gold producers during the Great Depression. They went up by MULTIPLES, as well as paying dividends that virtually doubled the values of the stock when they were purchased before the Depression. As the economy begins to see the light of day after this period, then gold and silver will begin to lose their safe haven status. most likely at this point, and new currency will have been instituted, and the slow process of trust in paper currencies will renew itself, as it has done in cycles for hundreds off years. Midway into the deflationary time, whenever that is, will be the time to sell your gold & silver investments and redeploy into "producing" assets, such as stocks, which should be dirt cheap at this point. Everything I have written is conjecture, but as they say, history may not repeat itself, but it usually ryhmes. Read on on economic history throughout the world, and you can begin to see a pattern develop. Great financial minds such as Soros, Rogers, Faber, etc., as well as the Austrian economic schools think alonfg these same lines. I'll bet on them as opposed to fools such as Gartman, Van Eeden, and others who fail to see the forest for the trees. Good luck.