david galland of casey research makes the case for buying gold:

if you can anticipate what’s coming, you can get positioned to profit. To that end, we apply the following exercise in Aristotelian logic:

1. If Obama is an excellent politician, he will almost certainly do whatever it takes to get reelected.
2. If the best way to get reelected is to keep the economy from collapsing before the next election, and he thinks he can achieve that by applying massive stimulus -- ignoring long-term consequences, because they are not relevant to reelection -- then he will apply that stimulus. (To the extent that this stimulus can be used to improve those reelection prospects, either in timing or patronage, all the better.)
3. The only way that the stimulus can be paid for is through taxation, borrowing, or simply creating the money out of thin air. As taxation is politically risky, borrowing at current low interest rates becomes difficult, and borrowing at higher interest rates threatens the economy before the elections, creating the money out of thin air becomes the only viable option.
4. The spending required to try and keep the bubble afloat is massive and therefore must be supported by an expansion in the money supply.
5. The greater the monetary expansion, the greater the ultimate price inflation.
6. Recognizing this, individuals and institutions will become increasingly interested in inflation hedges, starting with gold, which is why gold has been so strong and will get stronger still.
7. Buy gold.

http://caseyresearch.com/drpRoom.php...