Thursday, January 22, 2009

This Ain't Good....................And It's Getting Worse


There were separate stories out of England and the USA about how both country's central banks were about to turn on the printing presses and monetize their respective debts. It's their only way out now...unless they want to revalue the gold price ..and it doesn't look like that's in the cards at the moment. John Exeter's inverse liquidity pyramid is posted above. We've gone from "Small Business" to "Paper Money" in an unbelievably short 18 months...and now the Fed is trying its best to prevent the final resolution to gold. They're fighting a losing battle. Now it's only a matter of when...and how high. Buy physical gold and silver and take possession, as I get the distinct feeling that we're nearly out of time. And it might be worth considering taking a few months’ worth of living expenses out of the bank while you're at it.