"Saturday’s issue of Shadow Government Statistics...

"Saturday’s issue of Shadow Government Statistics (www.shadowstats.com) by John Williams had several interesting tidbits:

“The St Louis Fed’s adjusted monetary base in the two weeks ended December 17,2008 was up 97.5% from the year before.”

“The bulk of M3 components surge at an Annualized 39.3% for the last 3 weeks… The good news is that the system may be starting to return to normal functioning. The bad news is that the cost of systemic salvation remains higher inflation…”

I certainly agree with Mr. Williams. There will be higher inflation, and the numbers as compiled by Mr. Williams and others indicate that the rate of growth of the components of money supply is fast. In our opinion, it is just a matter of time before this turns into recognizable inflation of a substantial nature.

Respectfully yours,

Monty Guild
www.GuildInvestment.com"

Obtained at http://www.jsmineset.com/