Thursday, November 19, 2009

Dollar Down

The dollar's downward spirl continues... as I'm sure you've noticed. I mean its hard to pay 7 bucks for a gallon of milk and think there's anything other than inflation going on.

That chart shows the dollar heading to the 2008 low of 71. Now compare it to the gold chart...

So the dollar is heading to the 2008 low, and simulteneously Gold's target is 1300 in the next two months. Now if you've read Vox Day's book, the Return of the Great Depression, you know that he said if Gold was to reach 1500 per ounce by the end of 2010 then the hyper inflationist scenario he calls "Whiskey Zulu" would possibly be in play.

Not only will we see $1500 gold before the end of 2010... we'll probably see it before summer.

and of course... if the percentage holds... a gallon of milk will be 9 bucks or so.

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