The last few weeks, the dollar has been falling compared to other currencies and gold. There are a few reasons for this, the first is that the financial crisis is no longer seen as an immediate threat, and investors in general feel better abour the economy, therefore, they feel they no longer have to have their holdings in dollar. In addition to that the US government keeps going deeper and deeper in debt, and the world may be awakening to that crude reality. With this, gold has climbed about $50 dollar in a short time and the yield on US treasuries has gone up. I know that I'm just summarizing what has happened and anyone can do that. Looking into the future is more interesting and has always fascinated humankind. We spend a lot of time thinking about the future and about what may be, in a lot of ways our lives would be easier if we didn't focus on the future so much. My guess is that depression would be gone, it would not exist, we get depressed an sad because we use our brains figuring out how things will be with a new situation in our lives. So stop thinking about tomorrow, let tomorrow take care of tomorrow. Today I took my kids on a canoeing trip in east Texas, the drive was close to 2.5 hr from my house but I believe it was worth all the while. We canoed down a creek for about 9 miles, the creek was very slow and shallow for the most part, but there were stretches where it got a little bit fast and deep. In one of such stretches our canoe flipped over and my two older kids and me fell out of the canoe. My kids got a little bit scared, but there were plenty of friends that helped out by picking my 2 kids in their canoes, and in the meanwhile I floated along with the flipped over canoe for 100 feet or so until I found a bank in the river to flip over the canoe back. Fortunately we did not lose any of our items and our luch was still floating under the canoe (thank God for Ziplock bags). The lesson I learned is that these situations teach kids leadership by controlling their feelings (fear) and keeping their cool.
My prediction for today is gold prices above $1200 in December!
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