COMMENTARY

Social Security payments will show their smallest rise in four years - an increase of 2.3 percent. Yet, reports Moneynews, consumer inflation rose at the fastest pace in four years - at an annual rate of 3.6 percent.

A true inflation rate is probably about 7 percent, several times higher than the fake figure now dished up to us by our government. At that level, the Fed funds rate of 4.75 percent would be a shocking negative 2.25 percent. As such, it would reflect the true dimensions of the economic problems now facing us.

We're in the beginnings of a global readjustment that will end the dollar's dominance as the 'gold standard' currency for the world's economies. The dollar is likely entering a long, slow decline - followed by a crash - according to a recent Merrill Lynch note to clients.

So when you hear the term 'gold bug,' chances are you think of a survivalist doom-and-gloomer type who is incessantly warning of financial disaster. Well, think again because as events unfold, the term might as well be a synonym for "pretty smart investor."

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