The Road to Zimbabwe...........from Rico

Bob Hope, Dorothy Lamour, and Bing Crosby made seven "Road to" movies back in the 1940's. Perhaps the "Road to Utopia" most closely resembles Obama's current road movie.

Hmmm...would Obama and Biden be good casting for the "Road to Zimbabwe" or would
Bernanke and Geithner be better? In either case, Bawney Fwank is perfect for Lamour's part.

Now, setting aside painful realities for a moment, take a look at the attached chart and have a good laugh!
- Invert this chart and you have a perfect illustration of the death of a fiat currency over a few short years.

Don't believe me or the history of Weimar Germany? Go to Zimbabwe where an ounce of gold is not available at ANY price due to massive money printing.

Our "progressives" ecoonomics guru Keynes (setting Marx and Michael Moore aside for a moment) said that LOANS, TAXES, and PRINTING MONEY were the only sources that could meet the 'needs' of government.
- See any similarities to today here?

My guess is that the FED will have to manage at least a 14-year* devaluation of the US Dollar - by as much as 50% - with the goal of partly inflating-away a portion of the USG's huge and still growing debt.
* 14 years approximates a 4% inflation rate, which is NOT Weimar or Zimbabwe hyperinflation by any means...but in this best-case scenario it gives gold another 14 years of bull market conditions. Better prospects than the US Dollar or Treasuries have before them.

Of course, I could be wrong, and idiots like Joe Biden and Team Obama could 'blow' this one very badly with much worse consequences for all of us. Looking at how things have been going this past 9 months, Vegas-odds are not optimistic of a positive outcome.