For all the "we are going to be bartering silver/gold for basic food items" people, I have a question for you: Since the bulk of quantitative easing, deficit spending (stimulus), and slashing of interest rates is rapidly being tapered, what makes you think that the U.S. dollar is going to collapse? Did you notice that over the period that all of these dollar-weakening activities actually resulted in a stronger U.S. dollar relative to the Euro while they were taking place? I will be the first to agree that the U.S. economy and debt load is in a pretty bad situation.
The thing that I think a lot of you are missing is that we are a part of a world economy. The fact remains that even though the economic picture in the U.S. looked pretty poor during the recession, the U.S. financial situation is still stronger compared to the financial situation of almost any other economy in the world. It's all relative. Which economy do you see as being better positioned than that of the U.S.? Clearly, it isn't in Europe. Asia isn't looking so hot either. The rest of North America? South America? I'm just not seeing it. Most others aren't seeing it either and that is why you see the price of gold and silver pulling back. The truth is that if the U.S. dollar collapses that means that the rest of the world's currencies are going to collapse at the same time and that is an impossibility relative to everything that is known about basic economic principles. If all the world economies did collapse, you would have bigger problems to worry about than having enough silver to buy eggs and milk. I know the fear-mongering is good for commodity prices, but you guys just aren't living in reality.
. HH, Maverick.
