Today we seem to have both deflation and inflation going on at the same time. Just depends on what sector you are looking at. Housing, we see serious deflation. Look at food stuffs and you have serious inflation. I think deflation and inflation will continue at the same time for a while.

Some things I truely believe are that #1. governments around the world have not got the balls to deal with the debt issues they have immediately. In fact, many are past the point of no return already (and they know it). Only a small portion of the worlds "Joe Shmuck" population know enough to understand this fact and even fewer are acting on it.

Thus, #2. They will print and print and print until there is no one left who will take the worthless paper IOU's. Hyper inflation anyone? Governments will increase taxes out the wazuu and get there fingers in everything possible. The BP oil scenario just ensured that there will be new taxes on oil production, new policy etc... And you can be sure that oil will be very pricy in the future. As they print more, tangables such as oil, wheat, gold/silver (that being real money), will become very pricy in $ terms.

#3. At this point, a greater portion of the "Joe Shmuck" population will wake up and act and even say no to any government of the day. Many more people are going to be financially devestated at this point. Governments will contract in size, banksters will have sucked out unbelievable amounts of the worlds assets and we will have some form of a reset button.

#4. Durring the span of time of #2-3, the fiat monetary systems we know now will be revamped and will look very different (at least on the surface). The G20 is probably throwing around the who, what, where, when, ideas of what that new system will look like as I type this. It is most likely that those who create the new system will try to avoid involving some form of real curcuit breaker or form of asset backed component that will ensure that the government of the time has some form of restraint. Governments and of course the big banksters love their many forms of leverage. Fractional banking systems, derivatives, swaps, CDO's, synthetic CDO's, shorts, naked shorts, ETC... The list goes on. I for one feel this whole mess will begin again unless the new monetary system is backed by gold or alike and in full.

I am in cash, PM, PM shares, oil and just now another form of energy (Ram Power), and agricultur. We all may be looking for the next big trend and sector that will explode, but I think we ar elikely to leave our money in these areas for a good 2-3 more years.

Just my rant for the day. Sorry if it is a little random in it's order.

Deno G.