I don't know if you readers like this stuff, but since I have the time to read and since, if the price of gold goes up to $2800/oz at the time someone is crunching the Tesoro numbers, it will make a huge difference to each shareholder.

Tomorrow, Thursday, the European central bank headed by Mario Draghi will probably lower rates. The central bank will have to purchase trillions of insolvent debts. This will mean a little rise in the euro vs. the US dollar. However, in the longer term again they are faced with reduced output and rising debt. There aren't enough trillions of dollars around to solve just the European problem. When GDP is falling and you have rising inflation, it is the worst scenario the USA and Europe face. Italy, for example has 40% of their gross domestic product come from government. Obama job creation was mostly from government jobs and temporary hiring so you have decreased output. Thus if you have ineffective money printing you invite inflationary depression, gold explodes; if you have deflationary depression, gold rises.

When inflation rates are posted, energy and food are excluded as the “core” rates sound better. Your ten year old kid will tell you the cookies are smaller and cost more than just a year ago. So probably 9% inflation is closer to a true number. Anyone still have a bond that’s paying 6%? Now you’re down 3% this year alone plus the decrease in the face value of the bond!

So, from the Vancouver Sun:”If the world continues to print money, currencies will be debased against “tangible things” such as gold, farmland, exclusive real estate, rare art and collectibles, select equities to list a few. Therefore, having your savings invested in cash, bonds, money and markets, could mean a complete destruction of those savings by runaway monetary inflation.

http://www.vancouversun.com/news/been+down+this+path+before/5798026/story.html#ixzz1fs6coVBu

Michael Pento has his own company and observes “We had our depression here in the United States in the 1930s and we had a deflationary depression. But we had falling prices and plunging GDP growth. GDP contracted by 25% or 30%, but at least we had the ameliorating effect of falling prices. However, in the long-term, the euro currency will suffer and the price of gold will skyrocket in all currencies, but especially in Euros. Imagine what it’s going to be like in Europe when you have rapidly falling output from the EU 17 and yet their currency crumbling at the same time. This will be the worst of all scenarios, an inflationary recession/depression. If they do not do that, watch for interest rates to spike in Italy, Spain, even in France and Germany and watch for your deflationary depression to ensue. The point here is crystal clear, once you reach the point of no return, meaning your debt to GDP goes well north of 100%, there is no other answer but default.”