Bob Chapman on Discount Gold and Silver Trading Nov 17 2010

Bob Chapman wrote in the International forcaster of November 17 2010: ....
There is no doubt higher oil prices are going to increase costs for all sectors of the economy and negatively affect earnings. If that is going to be the case growth for the current year has to be negatively affected. That means higher unemployment already having been experienced in excess of 22% for months. Do not forget a few years ago that sales were double what they are today and unemployment was more or less half of what it is today. Thus, we enter this new economic region about 50% worse off than we were three years ago. Official inflation is slightly lower today, but real inflation is considerably higher at 6-1/2% to 7%. Capacity utilization is 10% lower as is consumer confidence. These facts certainly do not instill confidence in the present and in the future. As this round of QE2 gets underway we are certainly starting from a much lower base.....