From Denninger.....(and I very much respect the man except on the issues of gold and silver.....
""Quantitative Easing" is a scam. It's yet another sop and fraud to allow the government to deficit spend "allegedly" without consequence. It covered $1 trillion of deficit spending the last time. If they do come in again all they will do is cover another $1 trillion in deficit spending by the government, while your actual disposable income in terms of goods and services will see yet more declines, just as occurred from 2000-2010.
That's all folks.
The "scam" part of it is that there is no way The Fed can ever reduce it's balance sheet once it does this, because to do so the government will have to decrease spending by an equivalent amount to that "eased." It will never do so. Not voluntarily, anyway. Gold is moving higher on the bet that the attempt to "allow" continued government spending will fail and ultimately the government will be forced to default (either literally or through massive unsterilized money printing that destroys the currency.) I don't think that will prove correct - I think our foreign creditors will pull our credit card first.
But that's what Gold is saying, and if Gold is right, then America as a nation is finished, and our government will eventually dissolve either into outright tyranny or civil war and you will be THROWING your gold at people to defend yourself."
You see Karl, before I throw my gold, I'll throw my lead.
If the world denigrates to Mad Max status having food will be more dangerous than having any precious metal. And if you're not buying gold because things may deteriorate that bad, why are you investing in the markets at all? You should be digging your bunker and filling it with food.
You can add this type of thinking to the pile of "If I don't get the world my way" I'll throw a fit crowd. If the above scenario plays out and it likely will (i.e., the gov WILL print, they WILL default and credit WILL be pulled [it's already happening]), the dollar will become devalued against gold. That simple. The vacuum that will be created will be filled by the Euro, Yuan, Ruble, Real, etc. To assume the world ends because America falls is the height of idiocy. Rome is no longer and the world is better off.
The land grab that has been happening and all the real estate acquired by the banks will become a new national asset. How? The banks will be nationalized. The Fed is already buying their junk debt to keep them liquid and keep the digital flow of currency alive. Do you think the Fed will just go up in smoke? No. Even if they are dissolved they will still own the major banks and they will simply weasel their way back into Government even if it takes them another hundred years.
America's failing infrastructure will be built back up by the newly formed peasantry, recruited from the ranks of the middle class. They will work for their debt masters from abroad, rebuilding the infrastructure of America so the lights will stay on and the water will flow. Pay your bill at the local Chinese owned Walmart and they will forward the money on to Beijing.
Do not buy silver and gold at your own peril. It's the 4 B's time: beans, bullion, bullets and bible (though I recommend throwing out the Old Testament).