"Back in the year 2000, one share of the Dow would buy 44 ounces of gold. As the Dow declined and as gold rose, the ratio between the two headed lower. Currently, the ratio is down to 7.71, meaning that one share of the Dow will now buy only 7.71 ounces of gold. At previous extremes, the Dow would buy close to only one ounce of gold."

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"Everything has its price whether it's copper or wheat or a house. The price is stated in cash or dollars. But what if we face the ultimate disaster? The disaster would be -- nobody trusts the dollar (due to outlandish US debt). In that case, then the world will turn to the only safe money, money without a counter-party liability -- gold.

I noted this heading in a recent Financial Times. "Middleast Sovereign Wealth Funds Fret Over US Treasuries. -- Sovereign Wealth Funds in the Middle East are growing increasingly concerned about the health of the US Treasury market, raising questions about whether they will remain such active buyers of US government debt."

And I think, "Gad, what does that mean? If the US can't sell its debt, then we're in unbelievable trouble. The next step is hyper-inflation as the Fed prints debt it can't sell. Interest rates will have to go higher to make our debt more attractive. Questions are bring expressed regarding the full faith and credit of the US? Has that ever happened before? Time to watch the trend of US Treasury bonds. And the short-term trend doesn't look good"