The Fed crossed the Rubicon last week with its announcement of another massive tranche of QE (Quantitative Easing or in common parlance money printing), known as QE2. It is thus clear that what is now known as QE1, which was portrayed at the time as “one off rescue of the financial system” was nothing of the kind, but represented instead the bursting of a dam that can never be put back together again. The junkie has graduated to another level, from that of being merely a chronic debtor, unable to live within its means and sponging on the rest of the world, to selling its own future down the river in order to maintain its voracious consumption habits in the present.

One thing we can be sure of is that the rest of the world is “not going to take this lying down” – what is sauce for the goose is sauce for the gander, so we can expect this new fashion for massively ballooning the money supply to catch on increasingly around the world, as various countries seek to maintain adequate liquidity and remain competitive in global trade by taking the same proactive hands on approach to manipulating their currencies in a downward direction as the US.

So let’s now be crystal clear about what we are talking about and looking at here – we face the prospect of massive global across the board currency debasement and inflation resulting from same. Where does hot money go in such circumstances? – it goes into tangibles, commodities, collectibles and the like – and especially into the Precious Metals – anything which provides a bulwark against the ravages of inflation.

…read more and view dramatic charts HERE