-->Primary bear markets tend to destroy values -- and the destruction of values is basically deflationary. Of course, deflation is the mega-monster that the Fed has been battling against ever since the stock market bubble burst in the year 2000. And yes, it is strange that despite all the Fed's ceaseless inflationary efforts, the specter of deflation continues to haunt the US markets. Are we seeing shades of Japan?

Gold -- I wrote a lot about the gold situation yesterday. And I want subscribers to remember that when we hold gold or gold shares we're playing"the waiting game." The US and its overseas friends are also playing a game. Americans have a secret name of this game. It's called --"We pretend to pay you with our worthless paper dollars, and you send us your goods and pretend that you're being paid."

So why do China and the Asians continue this basically idiotic, losing game -- are they just stupid? No, they're not stupid, they simply want to continue selling their goods to the US. You see, the leaders of China and Asia have a problem. It's called keeping the masses employed. The Asian leaders 'problem is to see that hundreds of millions of their people have jobs. China, for instance, has TEN million people coming into the work-force every year. If these people can't get jobs, well, there's always the possibility of revolution.

So the game goes on. It will go on until the US sinks under an ocean of liabilities and debts and our foreign"partners" will no longer accept dollars. But no one knows exactly when that time will come. Next month, next year, three years from now? The signal for the fall could be a collapsing dollar. Or maybe we're getting the first hints of the fall now -- with the stock market heading down along with the dollar (the dollar got whacked big time today).