Good morning CM.

"Gold going up is the result of inflation created to save the markets from falling."

I absolutely agree with the statement. When I try to inject a little understanding in the sheeple, I have quit trying to explain to people that inflation is not defined by prices going up. When I talk about inflation to my friends or golf buddies, they kind of nod or talk about prices.

When I try to communicate the notion of infllation and the price of silver or gold, I now talk about the destruction of the purchasing power of the $. This makes them think a bit more.

I have a good friend who knows my interests and he generally thought of me as a gold bug. He is an ex Air Traffic Controller. He gets about $80k a year in retirement from uncle sugar.

On the 19th hole after our golf game yesterday, he said he was worried that the current GFC would cause the govt to default on his pension. I told him that that would never happen as the govt will just print all the $s they need to keep paying retires, civil servants, soldiers etc. He looked relieved.

Then I told him that it is the destruction of the purchasing power of the $ that he should worry about. I could tell by his reaction he now has realized that he should pay attention to the possibility of the $ "going down".

He has a money manager that has been "making" him a return that he acceepts as positive. I asked him if he was comfortable that it would be enough to keep him comfortable when a loaf of bread was $15 or a gallon of gas was $20. Its starting to sink in.

My point is that I think J6P is numb to inflation. For years people have been able to get by by increasing their debt to maintaining their life styles. But now things are changing and a very few are starting to wonder if the economic malaise is really temporary. They are wondering if what the govt says (the recession is over, things are getting better etc) are really true.

I'll be giving silver eagles to a few people for Christmas. It is my hope that it causes them to start looking occationally at the price of the metals. Then possibly it will open them up to seeing what is really happening. I fear for so many people that are so unprepared.