In the coming years, Europe appears set to lurch from the frying pan of depression to the fire of high inflation. When it does, the lessons of the Great Inflation [outlined in this article] will suddenly be all too pertinent.

The implications to the gold price when backwardation appears are widely misunderstood so I have prepared this brief note to explain backwardation, of which there are two types – money backwardation and commodity backwardation - and, as I explain below, both apply to gold.

According to some pundits, the market is dangerously close to a repeat performance of 1987. Today, I'm going to show you why they're wrong.

There is very little evidence of high inflation at present, despite what the hyperinflationists say, and a little bit of common sense totally debunks the idea that there is.

There are four main macro issues shaping the investment climate: 1.the tapering anticipation in the U.S.; 2.the stabilization of the Chinese economy; 3.a cyclical recovery in Europe and 4.the long awaited Japanese purchases of foreign bonds.

It’s been exactly two years since Standard & Poor’s did the unthinkable and downgraded the U.S. government’s debt rating...and yet, it’s as if it never happened…

Despite the preponderance of evidence that money printing doesn’t create jobs, Bernanke and his Central Bank colleagues continue to perpetuate the myth that the recovery is just around the corner, as long as we continue to print money. It’s complete and utter insanity as all it will accomplish is bankrupting the U.S. resulting in higher costs of living - and lower quality of life - for all of us. [Let me explain why I believe that is the case.]

All of this talk about a "bright future" for real estate is just a bunch of nonsense. The yield on 10-year U.S. Treasuries is starting to rise aggressively again and, because mortgage rates tend to follow such increases, mortgage rates are going up. As monthly payments go up less people will be able to afford to buy homes at current prices and this will force home prices down. As such, another great real estate crash is inevitable. Let me explain further. Words: 995 ; Charts: 1

At this point, thanks to a long-standing policy of wanton money printing, the Fed has more liabilities than ever before in its history - by an enormous margin - and this precarious balance sheet is dangerous, because if the Fed goes bust, everyone loses [- including YOU. Let me explain why that is the case]. Words: 398

One look at the chart below clearly illustrates that owners of Government bonds need all the help they can get right now!