A boom is coming, says Ted Peroulakis. Unfortunately, it’s a boom in inflation. It looks increasingly like the Fed will have to print its way out of this economic crisis. And the huge national debt burden will need to be inflated away. Ted says investors can protect themselves against this trend by holding the ultimate currency: gold.

How bad is it going to get? Our reference point is the 1930’s and the Great Depression. But people in Russia and Asia only have to recall events of a little more than a decade ago. The “Asian Contagion” actually began in Russia in 1998 when the country defaulted on its national debt. The crisis then hit Thailand and within a year had spread to all of Asia with a few exceptions (Malaysia and China being the main ones).

Hope and expectation is high as Obama becomes president. But Justice Litle says saving the US dollar is one miracle he cannot perform. America has spent and borrowed itself into a hole that it cannot get out of. And that’s why the writing is on the wall for dollar hegemony.

CBO forecasts $1.2 Trillion Budget deficit!  And we can expect more!  ADP shows job losses mounting big time!  Brazil’s real reverses course… And Now… Today’s Pfennig!

At the moment, money is being sucked out of the financial system, bringing the threat of deflation. But for James Howard Kunstler, the only question is when the new money being pumped in by the Fed will exceed the amount that has disappeared. James says we could see serious inflation – and a slump in the US dollar – before the end of 2009.

Jim Sinclair of jsmineset.com had a link to the essay “Before Saving the US” at ChinaStakes.com, written by a guy named Xiang Songzuo, which starts out, “The nature of the current global financial crisis is the biggest debt crisis in America’s history”, which is certainly not news.

Following an historic election, we take a moment to examine just what an Obama presidency will mean to the United States – what we have to look forward to, and how he will deal with our current financial crisis. And according Jim Davidson, some of the numbers just don’t add up.

Martin Hutchinson says $2 trillion in Treasury borrowing this year is a conservative estimate. This new debt will push up private-sector borrowing rates, while rapid money supply growth will create inflation. Martin says the Rydex Inverse Bond Fund (RYJUX) is a good way to play the demise of long-term T-bonds.

I want change too!  Euro leads a currency rally!  Factory Orders plunge!  Carry Trades back on the table! And Now… Today’s Pfennig!