The Two Scenarios

One scenario is absolute deflation where the Dow goes to 2k and meets gold there.  I do not mention that scenario too often because it is unlikely due to Keynsian economic policy.  More than likely, the Central Bankers of the world will issue hundreds of trillions of dollars to keep the ponzi going.  That is why the likely end game is hyperinflation of the currencie.

Word is out that the G-7 will step in where Bernanke left off.  Does this mean Bernanke will not need to mention QE 3?  Can he back door the program through the global banking cartel?  He may still do it, as placating the masses that his plan will work may be in their best interest short term.  The wool is still over the eyes of many, especially the Greatest Generation and Boomers.  These two generations are like dogs on a track; they think they are dependant on a system in which they think they have been part of building.  When one not only thinks one has something at stake, but that one's ego is on the line, one will do almost anything to maintain the status quo.  This is why society is spinning its wheels.

This is why the looming disaster is more than a financial one; the world has its ego at stake.  Yet the ego only resides outside of self:  it is a creation of whits.  Most important to the scenario is that the ego is let go, for it will hold society back from a nirvana that has been at hand since the beginning.

Because the G-7 is stepping in, they will try to spur growth by loaning gold out.  It is the only system of leverage they have, as printing fiat is only like throwing paper in a fire to put the flames out.  This will add supply (albeit it in paper), and quell demand (if only for a minute).  I think gold will pull back similar to how silver did last spring and how oil did recently.

After gold pulls back, there will be no turning back.  The gig will be up as the globe prints to infinity.  Once the Central Bankers make their move, the third and final stage of hyperinflation will set in soon after.  I think it will be apparent by the next winter solstice that something is askew.