tinman

Dollar Debased Like Never Before

The largest budget item will soon be servicing the debt; once the debt tapeworm gets established, it's probably a permanent condition even if the recession ended next week. The only cure is catastrophic inflation and nobody wants to drink that medicine.

Gold: Risk / Reward Ratio Favors Long Side

As confidence returns, money pours out of safety (gold & Treasuries) moving farther out into the risk spectrum. I expect this to be the case for several months, possibly a few years. Eventually, the astronomical increase in money supply will kick start inflation and we'll be off to the races. Shorter term, we should see significantly better opportunities for the miners, not so much in GLD.

(Disclosures: Long GDX & GLD)