The disaster in Europe should be pushing the U.S. dollar up more than it is but it’s not, and that has me deeply worried. [I'm] worried that the next leg of the dollar’s decline may be right around the corner; worried that the loss of the dollar’s reserve-currency status could occur more quickly than even I had expected and worried that the “X&@!” may soon hit the fan, across the entire globe. [Let me explain.] Words: 600

Though the complexities may appear endless, the global economy's coming implosion is really fairly easy to understand: here are four charts which do the heavy lifting. Words: 445

The International Monetary Fund wants the rules of the IMF changed so it can lend directly to banks and underwrite a rescue of the Spanish financial system without increasing Spain's government debt. If the IMF is permitted to do so, however, the banking system's control would pass to the IMF and such an increase in powers would be momentous. Here's why. Words: 755

Money/credit expansion (inflation) is insidious and like an addictive drug. The first effects appear to be pleasant - a seeming increase, if not boom, in business; lower interest rates; more available credit and a decline in unemployment - BUT, unless the monetary stimulus is continued, and probably at increasingly higher doses, the temporary high disappears. Below is a sampling of what eventually happens when central bankers try to 'help' the economy by creating money out of nothing. Words: 799

Is gold still cheap? No, gold left bargain territory long ago [but] we remain bullish on gold, not because we think gold is still cheap, but because we expect it to get a lot more expensive. [Why?] Because the world's most important central banks and governments remain committed to a course that ends in catastrophe for their economies and currencies. [Let me explain further.] Words: 565

The European economic situation is explained very simply in the illustration below. Take a look.

"In our view, monetary policy has been boxed in by previous actions, election year politics (and even more broadly by the dynamics of the contemporary state of democracy), and the slowdown in global forex accumulation. The result, we expect, will be a continuation of financial repression under the most optimistic of scenarios. At the very least, returns on liquid capital could remain negative for many years to come. Under such circumstances, demand for the protection offered by gold should remain strong. Should the presumed economic recovery falter, we anticipate that the calls for renewed QE will be deafening." John Hathaway

On the surface, Spain's debt woes have many things in common with those of Greece - bad age demographics and a toxic bank system - but you'll note that, as we tackle each of these, Spain is in fact in far worse fiscal shape than Greece. [Let's take a look.] Words: 700

We’re making history here. Gold stocks have never been this undervalued before. We’ve had a 12 year bull market in gold, but we’ve also had a 15 year bear market in the mining shares...It’s very rare in market history to see an outlier like this. This is an extraordinary event. Years from now we are going to look back and shake our heads in disbelief at how undervalued gold stocks were in 2012.

The deficits aren't going to stop anytime soon. The debt mountain will keep growing...Obviously, the debt can't keep growing faster than the economy forever, but the people in charge do seem determined to find out just how far they can push things....The only way for the politicians to buy time will be through price inflation, to reduce the real burden of the debt, and whether they admit it or not, inflation is what they will be praying for....[and] the Federal Reserve will hear their prayer. When will the economy reach the wall toward which it is headed? Not soon, I believe, but in the meantime there will be plenty of excitement. [Let me explain what I expect to unfold.] Words: 1833