While Paper Burns, The Metals Glow

Dow swan dives rekindling thoughts of the days of yore from 1987. Gold has its historic feet firmly planted back in the early to mid 70's with a rambunctiousness belying its 5000 year age. Gold and silver, along with the dependent equities, have been tap dancing like teenagers all over this moribund stock market. I saw a graph yesterday from Casey research showing how the mining sector is beginning to solidly pounce the rest of the stock market once again. Match that with the number of new commodity traders rushing into to fill the vacant mortgage lie officer seats, and we have the stirrings of a bucking beast. Let the metals rodeo ride!

It will be a beast to hold onto the gains though. Deflation of the money supply - not from lack of printing and credit - but from despondent debts no longer phoning home to the mother ship, be it bank, credit union, car loan, mortgage originator, or pawn broker. Someone pays. With the increasing list of banks writing down their losses, it looks like the creditor is getting the short stick, by the bucket load.

Head West - pick up some gold and silver along the way, move much of your financial base off the formerly safe shores of these United States, and make your next big moves near the lands of rice and chop sticks, because the U.S. has a long way down, and many moons to lie at the bottom when it hits.

Not profiting doom, just seeing a way through the doom to profit. And it will be easier to make that once in a life time killing where the buffalo's are roaming - and they are long gone from here. The car companies are downsizing from their already skeleton stasis. The financial companies have swindled the world and will reap what they plundered. The tech companies are a bright spot, but have an increasing appetite for Chindia over California. No blaming them for making a wise skilled labor and business friendly decision. Still, they take the mental motive force for powering our numbers higher - like incomes, standards of living, not to mention overall employment.

The mother ship of sound money left us long ago. Now we are suffering from the neglect of the fundamentals. Like any team that loses touch with the basics, we will experience a fast retreat from our former heights. The dollar is the score to watch and it shows no signs of reversing its pathetic performance that has been building for years.

Solomon says "Let your Gold and Silver be your bedrock, as the U.S. economic engine crumbles."