Just a quick break from the MMT series and from holiday visits, from Bloomberg:
Gijsbert Groenewegen, managing partner and founder of hedge fund Silver Arrow Capital Management was on Bloomberg yesterday and discussed what 2011 may hold. He covers commodities, precious metals, equities, and the possible collapse of paper money which could occur as early as next year.
I agree with his view that gold could drop significantly as hedge funds are forced to sell their most liquid investments to cover equity losses. But I think gold's subsequent bounce would be much stronger than the $1,500-$2,000 range Groenewegen gives, especially if sovereigns get involved and use gold once again to back their currencies.