oh ye of little faith, page-22

Hi chicklittle, I'm one of the 'religious people out there', but I'm not about to chop your head off and drop you in the pot for dinner. It's good to see a bit of humour, and also to see posts from from thinking people who look at the broader picture of what's happening in our economy and on the world scene.

There's no doubt that our Federal government is taking us into a serious debt situation which will take many years to repair, and I certainly agree with the comments about our housing market being in a bubble. The Australian banks will take a major hit when the bubble bursts.

Gold and silver appear to be the only safe haven as fiat currencies around the world continue to decline in value. Eighteen months ago I was a member of the school of thought predicting $2,000 gold/$50 silver within 2 - 3 years. I'm now starting to think that that could have been a very conservative view.

Although the Aussie dollar at around $1.10 is not helping our gold miners' profitability, the real return on gold will grow significantly when our dollar starts to slip, particularly if the US$ gold price holds or firms.

In the meantime, we look forward to some very positive news from FML as the management continue to position the company so as to take advantage of the strengthening gold price.