11.29.10
OK, all the pundits are expounding the same story that I've heard before.  Gold is going to crash, everything will turn out fine.  Government intrusion is a conspiracy, everything is OK.  Well it's not.  Normally I've found that it never pays to count on gloom and doom.  I hate to say it, it's different this time.  The laws of physics are unbreakable and they're in motion.  Given a normal depression or recession we will come out OK.  A little suffering but it won't last long.  I would normally agree but besides the law of physics is unstoppable but the laws of compound interest are also undeniable and the math just doesn't work for the US coming out of the massive government debt we've created just doesn't work.  When 37 cent of every dollar of debt the end of the ponzi scheme will come to a bad ending.  The economic analyst is groomed on government can always print enough money to eventually stop the storm.  Most of these economist don't understand that when money has nothing to peg itself to other than the belief that "we're the government and we're here to help" eventually runs out of credibility when there only solution is an unencumbered printing press.  This is not to say that the dollar will not be strong since it maybe the best house in a very bad neighborhood.  The rest of the world with the exception of the emerging market on the same path, but we'll eventually drag them down the sewer with us.  A currency, not matter who's, is doomed without some sort of control.  I really don't care if the currency is backed by grains of sand, it's better than nothing.  Just imagine having to count 14.3 trillion grains of sand.  You just can't do it.  Can you imagine if we used the world's gold supply backing the world's debt.  What's it worth.  I'm afraid it's not two thousand, it's probably closer to ten thousand dollars an ounce and maybe much more.  For sure more if we actually counted the currency in circulation, plus unfunded mandates, well it's more than you can imagine.  I can't.
See below for more incite.

06.28.10 or earlier
The seeds have already been planted.
Here's the problem.
As the US has borrowed and borrowed to the extent that the people that buy our bonds have warned about destroying the value of the dollar.  China and others have bought our bonds for years with the attitude that if they bought our paper they would receive back their money with some percent of return.  The interest on their investment is not as important to them as the certainty of getting back the same amount of value as they invested.  Well with the US's massive printing of debt the stability of the dollar is becoming increasingly worrisome.  We have been warned by the people that buy our bonds that if we don't stop this massive borrowing they will discontinue buying.  They have already warned.  Keep that in mind.  If the US starts to recover as it would naturally in the economic cycle.  Well to finance our recovering economy, we need to borrow to finance this expansion.    Here's the rub.  China has already warned about borrowing and now our economy needs credit to expand the coming economic recovery, having been warned and we need to sell more bonds but the Chinese have already warned about this and they refuse to buy bonds at the current low interest and may also sell the dollars they have, well you can see our dilemma, we will have to raise our interest rate to entice their participation.  Well the higher rates will explode the deficit and increase the cost of financing our would be expansion.  Well the higher rates in fact will probably kill our recovery.  So our economic recovery will really be our economic disaster.  I could be wrong. 

Beware the better economy.  With a better economy the need for more money comes into play.  The problem there's no more money to fuel the new economic growth.  It's catch 22 if our economy grows the need for money grows but there's the rub. To get more money we need to sell someone bonds to finance it.  To offer more bonds in a debt ridden world will bring the wrath of the Chinese.  They're already nervous about how much debt they hold to ask for more at this time would scare the hell out of them and they would refuse to buy our newly offered bonds.  This would lead to a more dramatic decline in the dollar and the domino's would start falling.  Instead of buying this debt they suddenly become a seller at the exact time we need them to finance or looming recovery.  

Let's make one thing clear.  I am not a writer.  I don't know if I am the creator.

In the beginning I started as nothing then God or I started a journey.  God or I will be referred to as the Whoops.  Whoops farted and it started.  From nothing an opposite of nothing gas crept out and the little piece of the gas's journey began.  The gas at first was nothing more than a sub-atomic opposite of the anti-gas which Whoops had created before there was any time.  The piece of gas which was not related to time or even light was able to traverse what would be called the universe.  The gas expanded at the speed of what we now call thought.  Later on we'll learn that the speed of thought is what enables mind expansion and also travel through time.  At this time you probably feel you've read something like this by a guy named, Inert Von-gut but in our current language, Kurt Vonnegut.  He was "Whoopy" or now called enlightist.  He wrote stories about the "answer".  Which by Whoop's contract he could never reveal.  He was allowed to inspire hope that there might be an "answer" but Whoops said no man will even know the question to the "answer".  Is there a right answer only Whoops knows.  Because at this particular time in which the immortal alignment that is about to occur, Whoops will allow the question to be asked but is not sure about the "answer".  At this time Whoop's thinks that if you know the question and smell the proper gas it should become clear.  For many years the question had been what is the sound of one hand clapping.  Well in the past the answer to the question had been bullshit but if one smelled long enough the answer changed from bullshit to diarrhea.  This according to Whoops was one of the great "whoopers".

Back to the gaseous journey.

The gaseous journey can be compared to Van Morrison's, "Into the Mystic", which described the gaseous voyage as when the Bonnie Boat was one.  The Bonnie Boat being of course was the little fart.  The Grateful Dead also explained the gas as being tunes played on the harp unstrung.  This little phrase gave a clue to what the gaseous emission was thought to be.  Morrison, Von gut, and the Dead thought they were being cryptic in their words about the creation of the universe.  Not exactly but they like millions before them thought they new the question but had no clue about the answer.  The gaseous emission could never be explained by the words we now have access to.  We will give vocabulary which will make the question more understandable to the human ear.  

Never ending voyage.  gas from von gut leaving.

the end justifies the means.  never-ending leads to the horrible smell which repel the new gas in the opposite way which lead to it being lost and to get back to the smell it may take eons.

whooper, whoop-t-do, whoop-c-daises, whoop u, whoopist, whoopdom, whoop-o-kiam, whoop, whoopsies, 

yeah though the whoop be the great, without the smell it's only third rate.
yeah though the gas be great without the journey it's only innate.
yeah though I walk through the shadow of smell the shadow's the difference between heaven and hell.