Thanks for the blog. I heard you speak on Lee Roger’s show (Sussman is guest hosting with OV) and I immediately found your blog. I have been reading the articles ever since.

Wow, a journalist who goes beyond stage-one thought! The way you cite your sources lays-out a road map that gives your work extreme credibility.

I agree with your conclusion regarding gold. “…all the evidence shows the government is going to take the path of least resistance and expand the budget and print money.”

You have reported that the inflation rate is about 8.8%. What do you think the inflation rate will be in one year (I know you don’t have a crystal ball, can you give a wide range of possibilities?)

Do you think a republican take-over of congress in 2010, or a tea-bag coalition with republican support, could turn this around?

I believe the Elephants have been acting like firt-gear socialists which is better than the Donkeys and their fourth-gear socialism (neo-marxism).

I know labeling ideology is not PC; however, philosiphocally speaking, the above labels seem true-to-life. What do you think?

Thanks,
Mark Mudgett

I intended to send you a copy of an article I read in the last few days. In was covering US Treasuries sales and was neutral to slightly upbeat. The problem is a little gem in the article. It stated that China bought $ZERO US Treasuries in Oct, 2009. Add that to what we know about our dollars [U$D] obligations and you would be stupid indeed not to have some gold. China is slowly BUT methodically positioning itself out of the U$D. If you are the lender and you see runaway spending far in excess of someone’s assets, you cut the credit limit; that is if you don’t cancel the account.

Reason One: China seeks to end the American hegemony. If people do not agree with this that is fine but I think they are oblivious to their surrounding.
Reason Two: China is smart enough to understand that the USA can not cover the debt and obligations they have incurred and the US is still spending money like drunken sailors. Does spending money you do not have on MOSTLY silly wasteful things equate to a sound strategy? I could not find it in anyone’s economic text book.
Reason Three: China is going slow to mitigate losses. They are changing maturing long term treasuries for short term and are spending U$D on commodities.

Merry Christmas Everyone. While thinking is hard, I urge everyone to think for themselves.