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<p>[QUOTE=&quot;InfleXion, post: 1410372, member: 29012&quot;]I can&#039;t guess where unemployment may go from here, but I can say that the official cooked unemployment rate is much rosier than the straight up employment to population ratio which has been on the steady decline. It used to be that when Ben would speak, gold would always rise. The only constant I can see is that when he speaks, gold and silver move one way or the other, because markets know that he holds the keys to inflation or deflation. I saw a report the other day showing that the number of market transactions is growing exponentially, with between 1/3 and 1/2 of the transactions over the last 10 years occurring in the last 2. We have a market dominated by computer algorithms that can actually spider web site data and make decisions within split seconds of information being disseminated. So there is no reason that the prices have to go lower even if the economy gets worse, but for those of us who measure wealth in ounces of metal, and measure commodities against other commodities instead of currency, the picture will play out much differently than for people who only think they&#039;ve increased wealth even though their return is less than inflation. You are correct that this pattern cannot last forever, because bonds are a debt instrument from a sovereign nation, and these nations have more compounding debt than their GDP can ever pay off. There&#039;s no way out for them other than hyperinflation or default, as the debt is growing exponentially, and in either case a bond will not preserve wealth. Stocks may, and in the short term will definitely benefit from QE3, but it&#039;s hard to imagine companies remaining prosperous if the nations they live in are amidst instability. However, as long as big financial institutions are in business, and as long as the Fed can print money to give away to them they will continue to exert their influence over markets in the face of even the most rational contrarian arguments. One day this must end, unless people are willing to put limitless generations into debt slavery. People (like Warren Buffet whose own father knew the value of gold better than he does) often downplay gold because it doesn&#039;t produce anything, but that is exactly why it is such an important asset, because it doesn&#039;t have to produce anything to have value. It is free from circumstances other than the single one that defines it, which is as an inverse correlation to currency value.[/QUOTE]</p><p><br /></p>

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