The questions that arise are these:

The false recovery that we'll see in the US... How long will it last before the near hyper-inflation the Fed and US Govt have inspried really starts to show itself?

During this false recovery, how much will spending increase, and how much will hiring increase? As Robert Higgs has pointed out, one of the major problems during the Great Depression was that FDR's policies led to what Higgs has called "Regime Uncertainty", wherein employers were reluctant to make new hires and new investments because they did not know how much mor etheir economic liberties were going to be attenuated (ie crushed) by the Stalist President. Given the exploding nature of the current federal regime (and the preceding, and the one before that, and so on...), it remains unclear whether or not the industrialists of the US will be willing to take risks that could, due to future legislation, bring them regulatory or tax hardship. This will undoubtedly apply a dampening effect to any of the curves of this false recovery.

Also, the spending of the federal government has to be paid somehow. In addition to taxes, it borrows in order to spend. But, because they know the Dollar's value is dropping, foreign nations are not buying long term debt instruments to the degree they once were, and that problem will become worse as the inflation kicks in harder. This factor, coupled with the impending need of the Federal reserve to increase interest rates in order to try to signal a 'staving off' of inflation (which is far too little too late), will force bond rates upward. The immediate effect is to further retard purchases of bonds being currently sold (people will wait for bonds with better yields), and to force the price of the cheaper bonds lower. All of this spells financial disaster for the US government and for the Dollar.

Take a look at the info on gold...

http://www.breitbart.com/article.php?id=CNG.ff41282c008d4c070bbcfcf1ad946201.141&show_article=1#

Be Seeing You!

Be Seeing You!