Jimmy Willy,

"Usage of the printing press in large scale volume will earn the certain reward of astronomical gold and silver prices. The decisions to be made will determine whether a return to precious metal supremacy is accompanied either first by very high interest rates and uncontrollable credit derivative meltdowns, or second by suppressed controlled interest rates and total discouragement of savings from artificially low interest rates. Systemic meltdown awaits the first path, while continued pursuit of bubbles the second path. Either way, gold wins! The spoils will be devastation for the first path, but rationing for the second path. Both paths require the most dreaded device to be deployed at the last turn, the printing press. Other alternatives will have been exhausted.

A tragedy is in progress. For three years, my premises have centered on foreign-held debt leading to lost sovereignty, on the inevitable wreckage of the US banking system (first with insolvency, later with bankruptcy, finally consolidation and nationalization, and a long drawn out housing bear market made worse by the extraordinary extension at its peak. That pathogenesis is on course, in progress still, despite supposed rescues, most being horribly designed and full of the same broken devices that Voltaire warned about. Few people think much about the Founding Fathers of the United States these days. They would be appalled, even say, I TOLD YOU SO. Thomas Jefferson warned specifically about handing over the power and authority over money to private banks, stating in clear terms that if granted, then in time the nation will lose their homes to bankers. We are there. The brilliant second president crafted the Constitution, an ignored document shredded by those who prefer war, fear, and private profit to liberty, free markets, and honest money, while they spout endlessly about freedom, national pride, and foreign threats. The menace is internal."

The full article is available on Kitco.com.

The M3, mysteriously no longer reported, year over year, is apparently up approximately 17%. (that stat is a few weeks old so no doubt the current figure is higher!)

90 banks in the US are on the FDIC watch list, which, incidently, didn't include Indy-Mac. (if my memory serves me correctly 2000 US banks failed during the "Great Depression" a time when Homestake, the gold miner, moved from $5 to $50+ on the NY exchange all the while paying huge dividends! What would the inflation adjusted value of $50.00/share be in todays $US? No wonder the Hearst's are "filthy rich!")

Who "in their right mind" would buy US dollars?

Time is nigh to buy some undervalued gold equities with SAN near the front if not leading the "pack!"!

And the clock ticks on . . . leaning heavily in favour of real money, Gold!

RUF