The USA cannot raise interest rates. They are stuck between a rock and a hard place and their only method of financial survival is to print money. Otherwise they will go bankrupt, plain and simple.

The US does not have to disclose M3 as per a bill passed by Bush in 2007, which is how much money they print. So a license to print money is what they have and what they will use.

I think you guys are both right. Interest rates will rise, but in only currencies other than the USD. Australia has already bumped theirs, Canada will be next, and down the road, The Euro. The US will continue to print and it will the the USD holders that are left holding the bag as their money gradually becomes worthless.

Gold is measured in US dollars so even though it may simply retain it's intrinsic value it will still probably increase relative to USD.

My buddy has done quite well in 2010 with all of his US stocks. Of course, most of those gains have been nullified by the declining USD when converted back to Canadian. I think that will be the trend that continues. One step forward, one step back if you hold USD.

All my opinion of course. I have yet to read a sound argument for gold going down and the USD getting stronger. If anyone knows of anywhere to get this kind of rhetoric, please point me in that direction. As someone said recently, all of the US Bulls have their heads in the sand lately and are becoming more afraid of trumpeting the story.