Meryn King, the British counterpart to U.S. Fed Chair Ben Bernanke, had this to say in a speech yesterday: “The United Kingdom faces two fundamental long-run challenges. First, to rebalance the economy, with more resources allocated to business investment and net exports and fewer to consumption. "That is consistent with the need – now widely accepted – to eliminate the large structural fiscal deficit and to raise the national saving rate. It is part of a need for a wider rebalancing of domestic demand in the world economy away from those countries that borrowed and ran current account deficits towards those that lent and ran surpluses." Everything he has to say about the UK is true in spades for the US. The US. is more dependent on consumption than is the UK and perpetually runs trade (current account) deficits. We need for the US to ...

Graham’s note: today we’re featuring commentary from Ron Coby, Chief Investment Officer at Coby Lamson Capital Management in Medford, Oregon. Ron’s one of the smartest traders I know and it shows in his firm’s track record: up 16% year to date. The following is an except from his book, The Upside of Down which you can purchase online here.

Gold Will Perform Well No Matter What Happens

In this new century, gold is poised to repeat the 1970s. It will again have mini-bull and -bear market moves along the way, but the long-term secular move will be up—way up. If we experience true hyperinflation, then gold will match the percentage gain we saw in 1971 to 1981.

I do expect gold to easily top $2,000, and probably cross $3,000 per ounce, especially if central banks around the world continue to aggressively expand their money supply, as has been happening early on …