I too am looking to buy on the dips. I was thinking gold 1500 — To me, the two big variables that are hard to predict are this:
How badly will China fade actually? Even our so called “China experts” cannot predict what will happen in that huge and complicated country.
How far will Bernanke go to destroy the dollar in his hopeless attempt to make himself go down in history as the man who saved us from the next great depression? He’s gone further than I would have ever dreamed already.
If I could answer those, I’d feel a lot more confident.
Sadly, the dollar is already Monopoly money. We can never pay-off the debts we have in dollars the retain anything like their current value. So, the only way to do it is inflate the currency. We are the like the Roman Empire right before the battle of Adrianople. There is some sense of decline but we haven’t been struck a mortal blow yet (at least one that we recognize as such). On our current path, many will choose to deceive themselves till the very end. Hopefully, we can change that path.
As for China, they are in a better position to weather the storm than we are. Half of their people can continue to live in utter squalor because their Army would make short work of any serious internal challenge to their central government. All of our “smart guys” in the State Department have been saying for years that China would become more democratic as it prospers. I see no evidence to support their wishful thinking.