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The economy is nowhere near fixed, until we regain all the lost jobs.

the rest of the indicators mean little if so many continue to loose work.

this is not over. Nowhere near over. It will catch back up to us, unless something happens to regain jobs.

I wish I had free money to buy up some more silver.

Agreed, and there are other nations that have bought our debt as well. I don't know how you feel, but I don't think they can hold our debt forever. With a projected over spending of more than 9 trillion coming up in the next few years, the fiddler is got to be paid. And, from what I understand, the printing presses are already running filltime pumping out greenbacks.

Did your question get answered? We often go off sometimes and get a little excited. Although I think Horse and I agree, it is just that they can't rathole trillions of dollars for long and when the call is made for the dollars put in the "back bedroom," we as the true bill payers in the USA will have to pay. And, I think most of that will be in infated money. Don't you agree Horse?

To people advocating deflation:

M3 has not decreased one iota. None. Zero. Niente. What fell was the rate at which M3 was increasing, but it never went to or below zero. Ergo, monetary inflation has occured. Even if the banks don't put into circulation the money they've received, the foreign creditors will begin to dump dollars. Why? Because even without actual inflation in prices (due to lack of velocity), every dollar the government prints equates to a dollar of new debt. At some point, the government will have to print money continually just to service the debt, and then price inflation will occur. In preemption of that, the creditors will start dumping dollars. They are already doing this to some extent. It will accelerate. When it accelerates enough, and enough of the those dollars make their way home, that will cause price inflation here. Then all the banks and corporations which are cautiously sitting on money will start spending it to avoid loss of purchasing power, which will cause more inflation. Eventually, if the government doesn't balance the budget, the dollar will hyperinflate, unless its replaced first. It's a certainty.

I agree with slick. Another solid indicator is the currency market has anyone looked at solarindex's charts lately?

Or more simply the US / currencyX ratios the dollar has not been doing real well aginst other currencies that past few years and many of those currencies have lost purchacing power as well over that timespan, the dollar has just lost more

No paper please, would you like your payment in silver or lead (old mexican bandit proverb )

Why can't they "rathole" trillions of dollars? From my perspective, and I am really not close enough to "the action" to say for sure and without a doubt this is what is happening , but it seems to me that the Govt paid off everyone's mortgage. They gave the money to the banks to alleviate the mass foreclosures that had been happening. The banks in turn squirreled most of the money away, when a mortgage payment is missed, the bank goes to the hoard of cash and pays themselves from it. There is no reason that they can't continue this cycle for as long as they choose and there really is no incentive for them to stop. As a matter of fact it could be they are being rewarded for prolonging this process, after 6 or 8 missed payments they can put the mortgage holders out in the street and keep the property too...

The only way the Govt can get "their" money circulating is by raising interest rates. The Govt (being the morons that they are) thought the banks would not "out smart" them but what the banks did is put enough of that "free money" into the stock market to bounce it upward [starting March 2009]. What that means is that if the Govt raises interest rates, the banks will pull that cash back out of the markets to pay off their "loans" and the market tanks again. I would think that normal investors are jittery enough to pull everything out, every last dime and in short order, on a quick move downward...so the Govt is frozen in place...the bank would love to borrow deflated money when the dollar is worth more and pay it back in an inflationary cycle when the dollar is worth less...the Govt is stuck because they already played the "we need more stimulus money" card and got their ass's handed to them, so they are hoping the banks will be happy just collecting as much property as they can....because if they aren't, they could extort God only knows what else...

Well you sure have a good point on this one. Borrow with defalted and pay the debt off with inflated currency and aquire real assets at the same time via foreclosure after you drain the govt money dry . I should have been a banker

Sounds like Germany all over again, except no Dick Tatter to bail us out?

You just scared the sh*t out of me Horse! I have alot on the line in the market for a poor government employee! We hit hyperinflation too soon, I'm gonna eat beans for a long time. I've been thinking about this for a while, but you are the first to really say it for me. Time to convert all the rest to PM?

Yeah, but that kind of story is normally a selling signal for traders.
quick gains seldom hold ,long fought grinds up the wall of worry are the ones that hold, and even then they are subject to dramatic reversals, most pm price moves are sawtooth, watch closely if premiums and spreads change as well, the physical market has trends of its own.
If we start seeing physical shortages and delays again, then the pressure upward is really on.
when 40% brings spot to sellers again, start paying real attention.

I don't think the "oil backed dollar" is actually news to anyone

The US War in Iraq ['91] started after Hussein said he would start accepting other currencies in exchange for oil and in 1999 he did

Iran has quietly opened their own currency based "bourse" in 2006. (maybe that is why "nuikes" are an "issue"?)

Venezuela has followed suit with their own agenda

China Russia and Japan following this trend would be surprising only in that they all have a great deal to lose if the value of the dollar plummets...it could be that the have finally realized it will plummet either way and so they are going to try and save themselves...

I am still holding out for a re-entry point, Marc Faber is speculating on a contraction to at least Gold = $920...when a gold bull of his caliber starts seeing the metal hysteria, I tend to move with caution...

The fort knox repository has'nt been audited since the 1950's you really think there is gold still there? now thats a fun fact.

China is holding way too many dollars to want to disturb their value, they are too smart for that, but they are doing what kruchev vowed to do "we will bury you" and they are doing it economically.