tallguy

Gold / Silver Ratio at Code Yellow

Interesting article.

There is another refinement that may be underway, and that is the default to one standard, gold rather than silver as the default currency in preparation for the inflation that is to come.

Gold is easier to store, weighs much less / $, takes up less space, more universally has been a currency, doesn't tarnish, is easier to ship, etc.

Silver may be relegated to the commodities pile, with gold in the currency pile. China for example is classifying gold as a monetary asset.

Unemployment Claims Point to a Better Economy

Remember, the numbers are different now, we are actually at 15% or more unemployment if the same calculations were used as in the past.

One of two scenarios will develop out of this crisis, not necessarily in this order.

1. We will have a real recovery that is jobs based. Highly unlikely since companies continue to outsource at accelerating rates.

2. We will have a highly inflationary bubble recovery as the new money floods the economy, and prices surge, which will cause another collapse. Highly likely, high gas prices last year proved the consumer is under extreme pressure, higher prices overall will have devastating effects on consumer spending, as wages will seriously lag.

The 'Real' Unemployment Numbers

Another segment of the employed that has been completely missed in all of the unemployment numbers are the self employed. Contractors, consultants, anyone working that receives a 1099 instead of a W-2 is not eligible for unemployment assistance.