Dear Friends,

If you review the 1929 and to some degree 1873 experience, you will see that regardless of how terrible banking and general business were a significant rally back after the break took place.

The key element to the 1929-1932 event was the many programs that President Roosevelt undertook to affect Fiscal Stimulation.

I believe through the $2 trillion of fiscal intervention stimulation, a number I hear from the inside, the 8.5 trillion total so far is going to 20 trillion. Before this is all over the tremendous liquidity will transmute into inflation without precedent.

That is what you heard from the Dow and Gold today.

The rally in the early 30s was a humdinger so expect a multiple of that rally to occur in the USA. The only difference is when the monetary cat is let out of the bag by fiscal spending it will not go back into the bag. Gold will be launched into a multi-year phase of the long term bull market even when the huge rally in this bear market completes itself.

Respectfully yours,
Jim