The Federal Reserve cut its forecast for the economy today and suggested that more cuts could be the way to combat further weakness. While they never really mentioned the word RECESSION, they did mention the significant risk of Economic Downturn twice.

They also raised Unemployment projections and see more Inflation.

This present bull market in Gold could be bigger than in the 70's when the U.S. dollar suffered from inflation. During that period, mainly Americans and Arabs were purchasing GOLD. Russians, India, and China, Nada.

The world has changed since then as it is now full of Paper Money floating with Sharp Investors in the-know who want to protect themselves. The surest, simplest solution is GOLD investment. 

When young, purchased a few cars using GMAC. Hard times abound right now for this former giant as they announced closing offices in the USA and Canada losing $2.5 billion . They have been badly beaten via Mortgage Losses and now Auto Finance.

Why?

REPOSSESSIONS!

Just like Housing Foreclosures are rising so too are Autos and the GMAC's Repo lots are bulging.

Now the story continues telling all  the world is just over-leveraged. People have too much debt. To reduce debt, usually one either pays it down by spending less and saving more. Yet, the President wants his people to keep on spending more hence, his recent $150 billion plus injection plan.

However, there is a real chance things can be inflated through the collapse of the  Bond Market and or, a collapse of the dollar-based World Financial System.

Interesting times await us ARU holders.