Nothing exciting right now

By budwood on Wed, Jul 24, 2013 - 1:49am

Seems to me that gold and silver are bouncing around near their respective bottom prices.  Figure maybe another month or month and a half before the US dollar printing of the past year to two years starts to show up in prices of commodities.  Actually, the prices of commodities are the more constant so I say show up in the lower purchasing power of the US$. 

Thus, some protection against dollar depreciation will be practical in a couple of months and well into next year.  Jim SInclair  is on record as saying that gold will move in hundreds of dollars daily.  Well, yes, it has to, to get to levels which he suggests; he's probably correct because the printing of several trillion dollars is a very big deal and the purchasing power of dollars (including those which I have in my wallet) will slump markedly.

I suppose I would also print currency if I were in Bernanki's position. I can see some "academic" logic  to printing dollars.  At least the power to print is a real ego trip.  However, printing money is simply killing incentives for savings and savings are what are needed for innovations to move USA industry along.  So, look for more of a slow-down in US industrial activities.  Also, look for precious metals to be relatively safe harbors.  But, no great hurry; we'll have a couple of years to enjoy up moves in PMs.  And I am not worried about hyper-inflation; the US is big enough to roll with that inflation punch, although we'll experience enough inflation to become less than what we were a few decades ago.

We've gotten democracy of one person - one vote.  The problem when voters have little "skin in the game", is that voting becomes focussed upon what's in it for me!  Better we lower the voting age to 6 or 7 years of age to get real subjectivity.

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