bob,

I am not at all a Prechter fan. I lean toward an eventual inflationary outcome, but I do not exclude the possibility of periods of contraction along the way, such as we experienced in 2008.

My overwhelming consideration is that there is no long term stable paper currency, so no matter how we zig and zag physical gold will eventually increase vs those currencies. My concern, however, is that a further credit contraction could halt the progress of explorers/developers, perhaps putting them out of business or cheap fodder for the cash rich majors. This concern is clearly reflected in Tyhee's and other juniors' price. That is why Puplava's "year of the juniors" is going on its third year overdue.

That said, it's darkest before dawn. Root for the knuckleheads running (ruining?) their respective economies to inflate away and avoid a total collapse. For a gold and gold stock investor, I think it's the lesser of the two evils.

Strike