Fekete, the author of the first article, had been sponsored for years by Eric Sprott, in order to educate the public in a series of international lectures. Sprott runs a set of funds in Canada.

Fekete’s ideas about how low rates of interest destroy capital, and have for decades been responsible for the declining economy, are worth considering. He also has some important ideas about what he calls the gold basis, which is the name of the price of gold when investors are willing to pay more for physical gold delivered immediately than for the promise of gold to be delivered soon, but in the future, such as through a Comex futures contract. Here is a set of articles by Fekete that discuss it, and a quote from the first:

‘Basis is the difference between the nearest futures price and the spot price.’

www.atimes.com/atimes/Global_Economy/IC09Dj02.html

He explains that this indicates that gold has been cornered, and that hyperinflation will soon result. [Cornering a market means that all or most available gold is owned by those unwilling to sell at current prices, awaiting higher prices. This drives demand to a frenzy, as increasing numbers of people demand the remaining gold, and it disappears from the open market.]

The issue that I am currently wrestling with boils down to this: how will this hyperinflation affect the Canadian dollar? Clearly the massive trillions of US dollars now injected into the system will destroy that currency, once this short covering rally ends. The US dollar has risen because dollars are needed to close out trades that have gone bad in the derivatives markets. As soon as the derivatives-based collapse of the credit markets ends, the dollar will then collapse, as the gold basis and the past eight years have shown that the US dollar has much further to decline. This will end the current deflationary phase; and this is how we will know that it has ended.

Some now understand this, and how a general deflation and stock market collapse leads to stock portfolios being decimated. Those who did understand this have been out of the market except for profitable short term trades, since the long term top a year ago, and are now considering their next moves.

Please, no personal comments directed to me about any of the following: how much gold I currently own, how much stock, pm stock etc., I currently own, what investment ideas I suggest, or false and scurrilous remarks that I have said that someone was stupid, etc. Personal remarks such as these from posters here led to my decision to stop posting twelve days ago. There is little time left for solution finding. Let us not waste it.