Steve's Place

[DeepBlue1]

Some pretty high up folks already figure we're already in a depression that's just beginning.

The dollar is acting counterintutively in this situation because this situation is not like a normal cyclical recession that ebbs and flows with supply and demand imbalances.

This is what I'm now calling a "systemic recession" where the entire structure of the system is failing. It's really just another word for depression when you think about it.

In this particular case, and unlike the other depression, we're in a truly global economy and the dollar is only holding up because it's the "least bad" fiat currency, and still holds most peoples trust. Again, only relative to other currencies.

It's the "last bastion" of fiat currency. And you're right that if the good ole' USD loses it's psychological value, THEN....watch precious metals(mostly gold unfortunately, but hopefully silver too)skyrocket.

Sadly, that'll not be much solace compared to the misery and danger that's likely abound in a global depression.

Bullets, canned food and toilet paper will probably be more in demand than little pieces of shiny metal.

It's probably gonna be a rougher ride than almost anybody is yet prepared for. I hope I'm wrong.