Tao Economics

If people are walking away and handing in the keys to their homes, while housing is nationalized, and the majority of our debt is held over seas, at the same time people are attacking IRS buildings and states are going broke and will need to be bailed out, and entitlements need to be funded, how can anyone argue against hyperinflation? And this is all happening while banksters are getting billions.

I'm not saying there won't be bouts of defation, we've seen that, and we may still see it. But we are going to slam into that wall at some point.

There are a couple of quotes I want you to read today. The fist from a interview done at silverseek with David Morgan who writes the "Morgan Report".

Silverseek has a good article on the long term outlook of silver. Silver is still in a bull market of course, though it has taken a bit of a breather. The article points to a possible short term correction to as low as $12 an ounce before taking off much higher. If I see silver hit $12 bucks I'm backing up the truck! I'm not sure if it will go that low, but if it does don't be dismayed. Look at it as an opportunity. The bull market is far from over. Buy on the dips, or at least dollar cost average you buying during this bull market.

Gold looks to be diverging from the rest of the market it finally. To soon to tell if this is the new trend, but it looks very promising. Stocks are down hard today, while gold is up. But what I find interesting is the gold mining stocks are up as well! Usually these shares get sold with the rest of the stock market. That's just not happening this time, and it seems to be finally telling the story we've been expecting (At least for today).

That is the U.S. is issuing too much debt, other governments are bankrupt, and the unemployment problem is back on everyone's mind.

This is a fun blast from the past. Beware of heard mentality!

Where do I arrive at this number? Well the DR put together the two deficits for 2010 & 2011 for us. These are from the government's own numbers mind you:

Since there are plenty more folks that are more clever then me and usually write the message a bit sooner I'll first point you to Bill Bonner of the Daily Reckoning:

Maybe I'm just being cynical here after reading this from today's 5 min forecast:

The Dredd Market report has a great update on what's going on with the currencies and consequently the stock market over the last few days. Specifically the PIIGS nations and their effect on the Euro.