Goldbug Saturday Morning Coffee

All roads in Europe lead to gold:  Chris Martenson.  Bernanke and the data disappointed the goldbugs at Global Macro Monitor, but Gold reversed higher on Friday at Daily Gold.

Have Gold, Silver, and Mining Stocks Bottomed?  Minyanville

“Under this scenario, the Fed would work in conjunction with Congress to stimulate demand by getting cash in the hands of households. This can be done through tax cuts, or as Milton Friedman famously suggested, a “helicopter drop” of money. Bernanke explains: “A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman’s famous “helicopter drop” of money.”  Street Insider

You will be shocked at a comparison of gold, stock and treasury returns over the past two years:  Ritholtz  Gold chart for 200 hundred years:  Chart Store.  Long term dollar chart at Kimble Charting.

Adam Hamilton thinks the dollar is in trouble at Zeal.  The Dow:Gold ratio is headed to a 1:1 ratio, the path with be interesting.  Safe Haven