aud gold above $580....$600+ soon

The crisis facing the US economy cannot and will not be rectified quickly or easily.

The key problems facing the US include:

1.the continuing and enormous deficits(trade, current and budget) and the ability to continue to finance these. As stolwyk stated both Japan and China have huge amounts of US treasuries that continue to fall in value as the USD falls and may soon decide to start selling;

2.despite very low interest rates for a very long time the US recovery is not creating the jobs the US so desperately requires to bolster GDP and the huge productivity gains are beginning to wane;

3.high oil is here to stay and the imminent northern winter will see demand surge again, and foreign oil producers will demand higher prices as the USD further declines.Oil is a finite resource and global demand will continue to rise;

4.despite the superb efforts of the Fed to downplay inflation, it is rising and will continue to do so as the USD slides and the Fed continue to print money.The US Congress recently were forced to increase the legal US debt limit by US$800 billion to a staggering US$8.1 trillion.

5.despite continuing pressure on China to de-peg it's currency from the USD, China will wait until it's surpluses and the US deficits rise to the point where China is by far the indisputable economic super power and the US has reached the point of no return.It's also worth noting that when China do de-peg, the price of gold will be approx. 40% cheaper in Chinese currency terms;

6.the USD is currently losing it's priveleged status as the world's reserve currency as gold again takes the mantle;

7.the falling USD will improve the US trade deficit however certain industries such as manufacturing will never be able to negate or compete with the comparative advantage of China(and other Asian nations).

Soon we will see a true gold bull market with the POG surging for a sustained period in all currencies....including in AUD's.

Within a few months NCM at $20/share will be cheap