It is amazing how many things have NOT happened.

The dollar fell to $1.42 per euro yesterday. Many believe it is the Achilles Heel of the entire world financial system – including Warren Buffett.

There is suddenly a lot of interest in the idea that the federal government will make holding gold illegal, an example of which is “Is the Confiscation of Gold by Certain Central Banks Likely?” by Julian D. W. Phillips of GoldForecaster.com.

Mark my words:  Silver is going over $20 per ounce!  Currently, silver is trading around $15 per ounce, up 40% already in 2009.

All of our economic problems are caused by the Federal Reserve creating the excess of money and credit that produced the bubbles in stocks, bonds, houses and size of government, but doesn’t have to be electronic money made from electronic credit.

Last week, Mr. Bernanke announced that the Federal Reserve would buy $300 billion worth of U.S. Treasuries and another $700 billion worth of government-agency mortgage debt. In order to finance these purchases, the Federal Reserve would simply create this money out of thin air.

Gold declined slowly but steadily from $920 in Hong Kong to $890 at the end Comex trading on Tuesday, and got but a slight lift on the Globex to finish at $897.30/oz., down $24.70. Overnight, gold has edged higher.

“You will lose more in purchasing power (as central bank monetary inflation destroys the currency by printing enough to finance the higher stock prices) than you will ever net in gains…”

You and I are riding China’s economic tiger. The whole Western world is. It has been a pleasant rise so far. We have the electronic gadgets and cheap toys to prove it. “Made in China” is everywhere. But this tiger is a paper tiger – paper money.

Another sign that the US has entered a recession?According to a survey released today, US consumer confidence is the lowest it’s been in over a quarter of a century.

This month the Reuters/University of Michigan Surveys of Consumers has fallen to the lowest since March 1982’s level of 62.0.

According to Reuters, this is “when the ’stagflationary’ period of low growth and high inflation was still fresh in the memory of many Americans.”