I don,t believe the world powers can let the world economy collapse. We are indeed in a precarious time, sitting on a fulcrum that could send us either way in a heartbeat. But, IMO, I don,t think that will happen. I believe the only choice the world has is to print more money. If they don,t stimulate the economy further, this economy cannot survive. We are in a mess that the only way out is to print, if you stall the economy, there are too many repercussions that will kick in to the downside, and spiral downside out of control. There are 1 in 7 Americans currently on food stamps, the real unemployed percentage is most likely around the 20% mark at present.

We have become more civilized and learned as a people, which in fact has most likely made us more dangerous to ourselves than we were in 1933. To add to the food stamps and unemployed numbers now would be the straw to break the camels back. We are starting to see evidence of this by the riots by civilized people around the world today. The worlds resources can only accomadate a definite number of people, I do not know what that number is, but to increase the population, means that we are carrying on moving forward in the economy. Its the only choice to be able to sustain an increasing population.

To decrease the population would mean the resources would last longer, but thats not in human nature and history will tell us thats not an option. You cannot control a war today with the technology we have and it would most likely mean armageddon. So we are left with the choice, make the economy work by what ever means possible.

To make the economy work, print more money, but this money will have to be backed by gold, to keep a proportionate control on the amount of money printed. The old standard of a bullion backed currency, is the only answer to get the world back on track. The current problem is to catch up the bullion with the currencies. To do this, the countries have no choice to buy what they need if they cannot meet the requirements within thier country,s borders. To satisfy and sustain the PIGS countries, loans of gold will have to be given to them in short term, and possibly a future merger with a parent country.

This is why we see the countries buying gold, and even at the peak of over $1900 an ounce. Eventually, if they currently don,t have enough gold to cover what they think will be a prorata basis of gold to currency, they are gonna need gold. So buy it now, before the big rush does get on and the POG goes much higher. Vietnam increased their holdings a few months ago at a high POG, and Venezuala called their gold home to their own vaults. To me, these are tell tale signs of whats to come for the POG. It is my opinion that the POG is currently being held in check by the world powers theirselves, but this cannot last because of the physical demand thats increasing from the everyday investors. Everyone is getting scared of inflation and are trying to protect their wealth by getting physical gold. Eventually the shortfalls of gold to paper will catch up and send the true message out, that gold is in short supply. When this catalyst happens, I would not be surprised to see the POG jump by $100 per day. Its there like a ticking timebomb,just waiting to go off. And when we see stuff like I posted on the off-topic forum a bit ago, it sets the stage for worry that you might not get the amount of physical gold you want, if you wait too long.

This was one of the reasons why I would have liked to see Lori prove up the Tesoro quicker. We are most likely in store here for great inflation and the time to be selling it may be upon us shortly. If this is as big as some think, a country is gonna need/want this, not some company. It may be a company that buys it, but that company will most likely be backed by a country.If Lori waits until some kind of bullion backed plan is instituted, it may be too late, even though the POG could be $5000. I say this because you will most likely be seeing Peru change its position to a degree on miners, because they will need the gold for their own bullion backed currency. The time to sell this Tesoro, is within the next year, IMO. After that, the risk may become too great and it can be taken away from her by possibly the means above.

The price of oil will lead the way for inflation, we all need it, and its steadily being consumed. The production levels have to rise to meet growing demand, if they don,t, it will push the price of oil even higher at a much quicker pace. To increase production, revenues have to be found to keep exploring for new discoveries. These revenues have to come from the economy, and if an economy is not healthy, it will affect production on the downside. Another example why the world has no choice to further stimulate the economies. Every part of the economy is intertwined into a dynamic structure. You have to have all components working within reason of each other in this structure to keep it working properly. To keep it working properly, print money. No body on this earth wants to go back living like a caveman, so, print money!

All in my opinion