the usa's debt dwarfs china's debt ..., page-65

Ive got to agree with Ctindale. Gold at $5000 isnt a world we want to live in. But gold at $700 isnt one we wan to live in either. Both scenarios represent the inflation & deflation outcomes we have purchased gold to protect ourselves against. To paraphrase some wag on HC recently, at either extreme you will probably want lead more than gold.

If you've got decent amounts of bullion on hand & gold falls to $700, you will do fine. Not 'fine' in 2010 terms, but 'fine' relative to all those around you who will be on fire. Life will still be tough.

If youve got decent amounts of bullion on hand and well-picked gold equities & gold soars, then you will make out like a bandit imo, relative to everyone around you who is frantically speculating on general stocks, property, art, antique cars, you name it.

The end destination will be the same though, whichever route we take. Whether its a deflationary fall now or Minsky's crack-up boom in our immediate future. Human misery will still result.