The US economy is starting to recover, the housing sector is recovering, the jobs market is starting to recover, or at least that is what they are telling us. That means that US monetary policy is going to take the foot off of the bond buying scheme.

There are two problems with this so called recovery. It is fragile at best while interest rates are at near zero for five years and the fed is monetizing a trillion a year. Who will buy the bonds if the feds stop buying. If they stop pumping 85 billion a month into the banking system interest rates will have to go up or there will be no one to buy the bonds. If the interest rates go up the bonds will drop in value and the banks will have a problem with their balance sheet. The other issue is that wages to the consuming middle class have actually declined by 8.5% over the last five years. Any increase in interest rates and the housing recovery goes in the tank. This will also cause a problem for the balance sheets of the banks. In any case, the POG should be going up and without a complicit US government alowing massive fraud in the financial markets the pog would be much higher. So the answer to Andy's question is no one can predict where the POG will go because it will go wherever they want it to. Eventually it will have to revalue in the current fiat federal reserve note system that is being used today, however unless China and Russia decide to bow down to the Anglo American war machine we will have our day.