When gold was $1,000 an ounce, I said to friends it would easily go to $1,500 and possibly even $2,000 over the next couple of years. To predict that is complete insanity. My friends think it's nuts. And it probably is. But it is up over $1,100. That's kind of nutty.
I still think I'm right. When government borrows money on a ludicrous scale that they have little hope of ever recovering, the value of the dollar tanks. Simply put, it takes more dollars to buy stuff like gas, gold, and other commodities. Eventually inflation will kick in, though probably not for awhile.
Because I can see Obama's soul in the same way Bush said he could see Vlad Putin's soul :-) I believe Obama doesn't really care that he's emptying the Treasury. His friends in academia will eventually write how great and courageous he was as a president in the books to come over the next several decades. All the while the task of "fundamentally remaking America" as he pledged to do is underway. A remade America will look a lot like Europe in the 1970's. We'll have double-digit unemployment, declines in entrepreneurship and business activity, and less and less innovation. But we'll have "free healthcare" - eventually. It will be a great place for those with little ambition and few goals in life.
There's always hope though. The American people may wise up yet as the nation's finances get worse and worse.