http://www.321gold.com/editorials/saville/saville011910.html

BIG PICTURE Part 2: Topic: Press Club Conversations Jim Puplava President PFS Group & Host of FSN Rob McEwen Chairman and CEO US Gold & Lexam Explorations and Founder & former Chairman and CEO Goldcorp Leanne M. Baker Managing Director Investor Resources LLC Gordon Cummings CEO & President Kimber Resources Inc (NYSE: KBX) George Karahalios Private investor

Reinhard Seiser
October 14th, 2009

Recently, Jim Puplava (Financial Sense) hosted an excellent debate between proponents of inflation and those of deflation. With excitement I listened to the interviews hoping to learn of any arguments that I had not heard of and to find clues as to what is in store for the near future.

I was surprised to find that the advocates of both sides are actually quite in agreement on the general subject, and their opinions only vary on some of the details as to what time frame or what definitions/investing-aspects to look at. Let me summarize in the following paragraph.

Like a battering ram in a medieval siege, gold keeps hammering away at the gate. For the third time in less than twelve months, the yellow metal is once again crashing into the $1,000 per ounce level. As of press time, it looks like gold will close above that level today and will set a new record in the process. Even if the breach is fleeting, who can doubt that it will mount another assault soon?

3rd Hour with Jim & John - Part 1Robert R. Prechter, Jr.CEO, Elliott Wave Int'l, & AuthorTopic: The Great Deflation/Inflation Debate

Latest Presentation by Bob Hoye. Certainly worth the read, as he has been right so far.
http://www.institutionaladvisors.com/pdf/Great_Depressions_Are_So_Methodical-May-14-09.pdf

2nd Hour Guest Expert:Thomas E. Woods, Jr.AuthorMelthdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse

The modern-day monetary system employed in the United States is based on currency that can be created at the bureaucratic touch of a button. In charge of that button is a group of people with a firmly entrenched belief that deflation is the worst of all possible monetary outcomes.
We believe that this state of affairs is simply incompatible with the existence of the type of protracted "deflationary spiral" about which it has become all the rage to worry. Deflation is a choice in the current monetary regime, and it is a choice that our government simply cannot make.

Dec. 16 (Bloomberg) -- The Federal Reserve cut the main U.S. interest rate to as low as zero for the first time...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aafQgexzAGXk&refer=home

Announcements of new lending programs or asset purchases will now be principal signals of policy, a senior Fed official said in a conference call with reporters.

Puru Saxena is still bullish on commodities.

...And when investors deploy this cash into the markets, it will flow towards sectors which have been unharmed in this financial crisis. Now, I do not know about you, but apart from natural resources (where supply and demand imbalances persist) and industrials (which may benefit from massive government-sponsored infrastructure projects), I cannot find any other sector which has strong fundamentals. Housing faces severe over-supply, autos are struggling, banks will suffer due to over-regulation and consumer discretionary stocks will also fare poorly as the over-stretched public in the West tightens its belts. The one sector of the economy which remains in excellent condition is commodities. Demand is holding firm, supplies of key resources are still tight and the ongoing credit crisis will only delay many projects which were previously meant to come online. This will create additional supply shortages in the future, thereby leading to much higher prices...