[Moseley]

I am pessimistic about the U.S. economy. We've been living on borrowed money and borrowed time. There is still a lot of wealth, therefore, a lot of people still feel good about the economy, but I think they are deceiving themselves.

The talk on the financial networks is: will it be a soft landing or a hard landing, and the optimists are saying the landing has already occurred and we are on the road to more economic prosperity.

I believe that there is so much misdirected investment and built-in monetary inflation by the Federal Reserve that it is going to translate into price inflation (my wife keeps the books and our groceries and fuel bills have gone up more than 12% per year over the last 3 years).

It's somewhat like the 70's but different in that it is much worse than in the 70's. I expect the economy to weaken while at the same time prices continuing to climb, resulting in stagflation, and the extreme of stagflation is an inflationary depression.

Whether or not it will reach that stage, is yet to be determined, however, we are in for some very serious times, which means that paper assets are the worse kind of investments to be in at this time and hard assets are king. That is why gold is so high. It's been a long time since we seen a switch from paper to hard assets, however, over the last 5 years you can see the switch evolving.