GOLDBUGS AMEX Goldbugs Index (GOLD)

[al44]

Joe- you have a very good take on what's happening with the US dollar worldwide. I have always feared what is going to happen when all those dollars come home to roost. Just MHO, but I don't think any free trade agreements are going to pass a congress in the control of the democrats. I believe the near term is going to be more protectionist than free trade given higher costs of basics like food and energy and the loss of decent paying jobs. I know it's wrong but the politics of it will prevail. Back to the dollar, no matter how much our political hierarchy says they want a strong dollar, they will continue to erode it. Your analysis was on target. A cheaper dollar will eventually bring jobs and growth back on US soil. European manufacturers are complaining right now about losses of business due to the high euro. The downside is the inflation that will adversely affect everyone. I'm not saying your philosophy about junior miners is wrong, but it's my preference to hold my metals in the physical. Making sure the miners are run by US or Canadian management is a must if you go that way. Even then be careful as there are too many scams that proliferate in penny stockland. Studying the management and ownership of a junior miner is as important as studying any drill and assay results and land holdings.

As an aside, I read and article about the rise of the survivalist movement. It was food for thought. The US was built on credit and cheap energy. The credit market is in total chaos and no matter how the bankers try to spin it, it seems to get worse. $500 + trillion dollars in derivatives is not a small number. No need to explain what's happening to the cheap energy. Where are we headed from here? I wish I knew.

..........al