Long Silver John

Fiat Money and a Profligate Congress: A Bad Combination

That law was called Graham-Rudman, and the exceptions ate up the rule. Same thing for gold standard. When deficit spending got out of line with gold supply, the government devalued (1934) or went off the gold standard (1971).

What's lacking is the willpower of our leadership, which is focused on getting themselves re-elected, taking PAC-money from the special interests.

Volcker is the only guy (short of Graham and Rudman and maybe Bob Dole) who had the guts to take a stand. Volcker must be getting extremely nervous about this whole thing.

Obama will have his chance, but the preliminary indications are that he's going to spend like there's no tomorrow. Doesn't look good for the dollar (which is why I'm long on silver (and gold)).