Gold breaks out during worsening news.

The Obama regime began with a torrent of lies. The economy was allegedly bad and the new regime had its prescriptions: increase govt spending in an unprecedented way by passing a stimulus bill of nearly 800B. Such a massive spending bulge by the govt was supposed to have brought unemployment down to what it was when Bush left office.

Then the cat got out of the sack. Unemployment went up even higher than projected without the Porkulus bill. That's because most of the money was spent to bail out teachers' unions and finance "green" scams. In fact, the stimulus made matters worse.

Employment meanwhile barely rose, while the rolls of govt employees grew much fatter. The Obama regime's pland, therefore are an unqualified failure.

Socialists are in trouble in Europe as well. Europe's questionable debts have risen past $2T and that may be hiding even more toxic debt. Meanwhile, the FED continues with QEII and may extend the money printing by shortening the maturity of some T-bills.

Did you believe the propaganda that gold was in a bubble? And that silver should be shorted? Even Larry at Weiss Reserch slipped up on that.

The last graph shows gold breaking out from the 1,440 resistance. As of now, gold is quoted at $1,469 and silver at $40.2/oz. and the US Dollar is just above the magic 75.0 support.

What of the coming months? There are two scenarios: 1. with re-election of Obama and 2. an Obama loss in 2012.

Gold and silver will continue to rise and the Dollar will lose maybe 1/2 of its current value. We can only go by the precedent of the Jimmy Carter disaster. In the third year of his Presidency, gold skyrocketed to over 800/oz. In current dollars, that would be 2,300. With inflated Dollars, it may get up to $5,000/oz. As the re-election of Jimmy Carter looked more questionable, gold began to lose its luster and it declined during the Reagan years.

Are we on the same or parallell path as during the Carter year? Yes, Obam is even worse than Jimmy Carter. We have economic stagnation, gathering inflation, rising gasoline prices and we even have the signature military disaster. Not in Iran this time, but in Lybia. I believe that gold may soon go hyperbolic. I'll let you know.