Well my opinion of Gary North is he is as wrong headed as ever. never liked his stuff and it makes little sense to me. Don't know where to even start with his views so will leave them alone. Bernanke is the ultimate deflation fighter and flooding the system with money and printing like crazy is well documented. The present scenario is certainly similar to the 1970's except worse. It seems to me we just witnessed a huge intervention by central banks around the world on the dollar and commodities and I would bet it won't work for long. Thankfully all the banks are not on the same page, except for this short term intervention this week, with some trying to fight inflation and do something positive about outcomes and the future while the US just digs a deeper hole.

If the FED is ever able to talk the other central banks into a concerted long term defence of the dollar by printing their currency to support dollars as opposed to manage growth then hyper inflation will surely be much worse than the 1970's and will end for sure in a monster recession but I don't see this happening yet. Only the US can fix the dollar and they seem unwilling yet to do so which means the dollar goes lower. The dollar can't be jaw boned anymore by a treasury secretray mentioning a strong dollar policy, everyone just laughs. Concrete actions must be taken which involve pain, real economic pain and lower standards of living with increased self savings top fund economic activity versus borrowing from the capital of emerging economies. It's not rocket science but who can sell to America that they need to lower their expectations for 5-10 years and maybe forever, no one I see until they are forced too and that may yet require a few more years and more bank failures.

Stagflation (low growth and high inflation) is the name of the game for the US economy for the next few years in my view and this is gold and commodities bullish but dollar bearish and this trend didn't change this week and no action taken did anything but make this trend more powerfull. The trend is only taking an imposed rest and gearing up for an even bigger move in the weeks and months and years ahead.

The big issues are certainly yet to come when many realize months and maybe a year from now that banks are still taking surprising write downs on various junk assets, more banks fail, rates start higher to fight inflation and defend a collapsing dollar and bonds collapse, watch for it.

I don't care what anyone says I will continue to hold those things the world needs to for economic growth (metals), eat, and appreciating real money (gold/silver), and some foreign currencies where low debt and strong reserves exist, if those reserves are in gold even better. I will avoid financials and consumer in the US.

BTW, I am not anti-American, far from it. None of this means America is going to fail or disappear, it will rise like a zenith with new leaders with new strategies, excesses gone, jails full of Wallstreet thieves, not the policeman of the world which requires a strong currency for sure and everyone will want to buy American assets once again. Every FED governor before and since Volcker has inflated away the dollars value and this process continues and will not abate until another President has the guts to allow another Volcker type to appear.