Bill Gross, the PIMCO Money Manager, to whom it is often worth listening, cautioned this week that our nations leaders really do not know where they are going. They are mired in the fiscal quicksands of perpetual trillion dollar deficits. I believe as he does that there will be more agony ahead after the present euphoria in the equity markets. Thus I say, "Caveat Emptor-Let the Buyer Beware!" Our leaders are paying scant attention to the "Buck" that is being passed on to our children who are going to be stuck with the bills that we are dumping on them. Today I do not see anybody around to weep for our infants. As the reporter covering the burning of the Hindenburg shouted in horror, "O the humanity!"

Likewise our leaders and many investors are clueless and eyeless in Gaza as was Samson. Even though the markets are hitting new eyes do not be blinded by the current euphoria on equity markets. Bullish sentiment is reaching new highs surpassing the pre-credit crisis top. Herds are selling their precious metal investments to enter U.S. equities on the hope of a recovery. This is giving an opportunity to precious metal investors to buy gold and silver on sale. As the mining stocks correct and gold and silver make a healthy pullback, precious metal traders who took profits in October and November when it was overbought and reaching resistance will now be in a strong position to enter as the price finds support over the next few weeks and reaches oversold levels.

This reckless U.S. deficit spending may reap the whirlwind of higher inflation, a weaker dollar and the loss of our AAA credit rating. An unintended consequence may be the abandonment of the U.S. Dollar as the world's reserve currency. Already the Russians and Chinese are in a pact to trade in their own money to protect themselves from imminent dollar depreciation. Refer to my last article on this topic.

Time and space do not permit me to discuss the deleterious effects of such items as earmarks, obscene bonuses, municipal government insolvency, and a list of the men and companies that got away with mere slaps on the wrist.

Not all the balm in Gilead may serve to deodorize the above. Perhaps well chosen and carefully followed mining stocks and well timed gold and silver purchases may offer a shelter from the approaching storm.

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