Gyroscopic Investing

Is this even possible?

http://www.bloomberg.com/news/2011-11-1 ... books.html

“There is an unwillingness, rooted in ideology, to explore ways to reconcile the demonstrated stability of gold with the necessity for some degrees of freedom in the management of the money supply to respond to crises and correct mistakes,”? he (Rickards) writes. “A reconciliation is overdue.”?

A fair point, though I found myself distracted a few pages later by a table presenting implied gold prices based on various measurements of money supply. The top value per ounce: $44,552."

Reub wrote: Is this even possible?

We should all hope not!!!

Reub
That's a very sobering article.  While I am leery of predicting future events I have been getting increasingly nervous for several years now.  Those who think a major or even catastrophic event, worse than 2008-09, is not possible are sadly ignorant of history.  The historian in me says we have seen this movie before and we should have a clue how it's going to end.  Or to use a more scientific formula... massive sovereign debt + money printing = bad juju.

Do I think we will see a complete collapse of the dollar?  No.  The global economic implications are too frightening to contemplate (though I could be wrong).  Most likely the rest of the developed world would intervene to prevent it rather than endure the Great Depression Part II.  But I really do see a period of very nasty inflation coming over the next decade.  My best SWAG (scientific wild ass guess) is 1970's style inflation on steroids.  Inflation is the way most nations get unsustainable debts under control.  We did after World War II and we did it again after Lyndon Johnson's two failed wars left us bankrupt.  Now it's time to pay for George Bush's military adventurism (and insane tax cuts).

I really do hope I am wrong though.

The tax cuts were continued by our current President...along with increasing our debt to 15 TRILLION dollars!

Reub wrote: The tax cuts were continued by our current President...along with increasing our debt to 15 TRILLION dollars!

Back 2008 a liberal friend of mine warned me that if I voted for John McCain we would end up with George Bush's third term.  He was right.  I did, and we did.