This so called recovery is problematic and now it is slowly entering a new dangerous phase. Bank losses have now been eclipsed as the major issue as sovereign debt emerges in a more sinister manner. This is only part of the problem and it will be overcome in the short term leading to resumed market growth. The real problem is the debt cycle and the emerging sovereign default concerns are showing us the future...
The Whitehouse believes that we are not too far from a job creation phase and should stimulate further. This also suggests we still have a "game on" situation and not another 2008 scenario on our hands here at this time. Talk is of huge deficits not fiscal restraint so expect more money entering the system as I suggested in my opening article this year. This is election year in many countries and mid term elections in the US so what politician will have the intestinal fortitude to remove stimulus this year?
Do you own gold (or silver)? I don't mean gold stocks but actual gold. If hyperinflation returns as it did in the 1970's, you would do well to have a few Gold Eagles or Kruggerands stashed away for a rainy day.
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