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<p>[QUOTE=&quot;Rono, post: 1369165, member: 6492&quot;]Howdy,</p><p><br /></p><p>It&#039;s a bit complicated - the connection between gold and the dollar.&nbsp; And it&#039;s changing.&nbsp; The dollar for years, has been the global both reserve currency and the currency of trade.&nbsp; Both functions are being reduced by other gov&#039;ts for a variet of reasons.&nbsp; So long as the dollar is the &#039;currency du jour&#039;, it will often work exactly opposite of gold.&nbsp; Over this past year, as the dollar strengthened, gold weakened.&nbsp; As the folks in euroland looked for a safehaven away from their banks and the Euro, they fled to the dollar.&nbsp;&nbsp; However, it&#039;s very curious that gold is only flattish relative to the dollar - it is up relative to all other currencies.</p><p><br /></p><p>Now, here at home, we face a bar tab of over $100 trillion freakin&#039; dollars in Unfunded Liabilities (social security, medicare/aid, various trust funds, debt service, etc.).&nbsp; Note that this is at the Federal level and there equal problems at the state and local levels.&nbsp; Oh, and before everyone starts dumping on the gov&#039;t, please note that the private pension guarantee trust (PBGC) is also an unfunded liability at the federal level.</p><p><br /></p><p>Now there is no politically feasible way for them to cut or reduce benefits (defaulting on their debts, as it were) sufficiently, NOR are they able to raise taxes sufficiently,[/QUOTE]</p><p><br /></p>

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