My Dear Extended Family,

Never before in the entire period of 1968 to 1980, or 2001 to present, have I received so many copies of classical deflationist scenarios in one day. It would seem as if the God of Deflation overflew the gold guys and dropped their leaflets.

Classical deflation does not have a snowball's chance in hell of occurring now for any length of time. To assume that you have to hold the belief that Bernanke is a mole in the present administration, placed their covertly to bury the present administration so deep that there will never be a democrat in office after 2013 anywhere.

If you believe there is a political appetite for the collapse of the Western financial system, they had a perfect chance in 2008 and did not accept that great opportunity to purge the system of Banksters for political reasons.

The problems of 2008 are here now and greater. Derivatives still challenge the entire system at a greater level. A major under the covers audit is being done right now of some major banks for serious OTC derivative problems. Market miscreant activity allowed the break to near nothing for many financial institutions. The activity specifically is the absence of the uptick rule, which is still missing. The regulators are controlled by Washington which in turn is owned by the hedge fund and bankster's lobby.

Nothing whatsoever has changed except the degree of difficulty which has risen to a level never existing in market history.

The rescue will come in the form of QE to infinity for the entire western world's financial system.

The market historians making fun of the gold community may not like the fact that it was the huge communication to his prison authorities and the system that actually got him the opportunity for freedom. Whatever the mental level reason for his hate of "Gold Bugs," he is wrong.

Gold is going to and through $2111 on its way towards Alf's levels.

The euro and the dollar, in that order, will be bailed out. QE will rise to infinity the longer Bernanke plays chicken with the present administration for perseverance of the private bank, the Fed, and its power.

Please stop sending me copies of the latest tome from our respected market historian. The history he is going to make now is his largest market error in his career, scaring the life out of investment protection insurance non trading gold holders, so much so that when they leave they will never return to the gold market.

I have written about Currency Induced Cost Push Inflation hundreds of times. They are all in the compendium. Our beloved historian does not understand this concept, but will be defrocked by it.

This popular writer is determined to walk the halls of ivy again, doing anything necessary to make that happen. Part of that is not having a history of being rescued by the "Gold Bugs," which he was. I knew him in the 70s when he looked down at me as not in his high circles.

Nothing has changed.

Respectfully,

Jim