H ... To quote June Cleaver ... "Don't you think you were a little hard on the Beaver?"

sorry had to say that ... it's my grade 8 sense of humour.

Mr Beaver ... If the world and in particular the US is so bad off, why are US companies announcing normal course issuer bids (share buy-backs) at levels not seen in 4 years? Why are company insiders buying at levels not seen since March 2009? Add to that the fact that 20% of US stocks are trading at a P/E below 10 and the average P/E almost 5% below the historical average and the fact the consumer sentiment is as low as it was in April 2009 ... I'd say we're setting up for a new bull leg. the sad thing is most average people will be left with their hand on the panic button buying gold as it corrects down to $1,500.

Gold will go higher for sure. central banks are buying and will continue to buy. the next BIG mines aren't due to come on stream for a few years so production will lag demand for some time.

The US is not as bad off as you say ... 1/2 their debt was spent on defense and homeland security on the past 10 years. They have the capability to pay off their debt, they just need to change the we want freedom but we're not will to pay for it mentality. That and realising that they can't afford to do everything. Once the children in the congress sandbox start playing nice they will solve the problem. Still this problem is not unique to the US.

The world cannot afford to let the US default and everyone knows they need a soft landing. It will happen. your arguement of default through inflation would be valid if the US was the only counrty in the world printing money ... it's happening everywhere, that's why the dollar is still where it is. The US isn't the only country with spending problems, it's a global problem.

Just be thankful you live in a country that is rich with resources ... and solid banks. That is a perfect formula goin forward as all the new mining projects coming on stream in the next several years will require financing and expertise and CANADA is poised to profit on both sides ....

on that note ... KEEP the LSE away from the TSX!!