q and update, page-50

Hi Chuck,

Thanks for the detailed reply. $1650 gold price seems reasonable enough to me.

Regarding your future gold price estimates and M3, etc.........

"If you ignore the huge debt levels you ignore the very high probability that they will have to increase money supply much further."

I am definitely not ignoring the debt issue as I believe the U.S already has an unsustainable debt level which quite obviously is getting larger by the day. My point was more about the "continued printing" comments. As I stated previously it seems money flows are debt driven and not printing driven.

The M3 includes large deposits from insto's, etc. This is most likely debt generated funds that have been routed to the banks etc. and paid for by the tax payer in the form of payments on bonds. Anyway, I think we are on the same page in regard to possible outcomes but maybe just view the trigger points differently.

How all this debt is going to be repaid is the real question. One thing I am fairly certain of is that it won't be from incremental improvements to the U.S economy. I know this because I own a calculator :)

The two obvious solutions to repayment of the debt issue (some time off yet IMO) is large scale printing in the form of a huge debt repayment or default. Guess time will tell.

Thanks again for the feedback.