Another summer of fun in the sun will be coming to end shortly for US financial markets.

However, with many players taking time off enjoying the last few days of August, we don't expect much to transpire on the financial scene between now and labor day. Those expectations will be quite different however as we move into September and beyond.

At that time, in what may arguably be the greatest shock since the Trojans woke up to find the Greeks eating their breakfast, the housing market and economy at large - should the latest statistics pointing to anything but a housing market "soft-landing" be correct - might be in for just as rude an awakening.

Couple that with huge US debt levels, and rates of debt growth that would leave space shuttle rocket boosters gasping for air, and you've got the makings for the exact opposite of a "soft-anything".

As we have noted in prior commentaries, the moribund US dollar - currently hovering around the 85 mark on the US Dollar Index - should come under pressure as the economy weakens, despite cheerleading efforts by Ben Bernanke and Henry Paulson. A dollar decline could be the instigator leading to potential dislocations in the stock and bond markets, fueling further dollar weakness.

Needless to say a dollar decline will be music to the ears of gold and silver, as well as gold and silver stocks.

Not too rosy a picture?

Well, that is where we will leave it for now, as the summer isn't over just yet and we are off on vacation. Enjoy the rest of your summer. We intend to, lounging by the pool by day and catching a few good old movies on DVD by night.

To learn how to preserve your wealth and protect your purchasing power, I suggest that you download a free copy of Euro Pacific Capital's research report entitled "The Collapsing Dollar; The Powerful Case for Investing in Foreign Equities" available at www.researchreport1.com.