What is he talking about? Europe is in a recession, at least Germany, and since Germany is the locomotive of that market, the rest of "old Europe" will have the same fate (conditions are somewhat different in the old eastern satellites, partially balancing out the old Europe problem, but those economies are quite small relative to Germany/France). I actually think that by this time next year, the Euro will lose parity to the dollar. If that happens, gold will creep back down, and a fight for the $340 level will ensue which I think will be won by the gold bears, particularly if the Euro drops under the buck.
As for hyperinflation, better show me tightness in supplies. Agricultural commodities as well as basic metals show no inkling of the like. There is still severe excess capacity out there that has not been closed or written off.
Last, as for a depression, depression occur when end aggregate demand collapses, with most of the advanced economies having in place welfare security nets, end demand collapse is not currently in the cards. I stick to my model form April 2000, a stretch of "muddling through" until a new equilibrium is established. Probably a severe recession in 2005 maybe even as late as 2006 followed by another recovery.
And not one to be too piggish, took the third serving of OVTI from last night off the table here at $39.92 for $1.10.
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