Todd G. Everts: Yeah absolutely and to add to that fuel is what would the position of China and Russia over the months and years to come because as China is now urging to have some sort of world currency managed by the IMF that would take many, many years to implement. But that could be an early sign that they’re not going to continue to buy dollars.

Host: They talked about this establishing a new reserved currency and weeding ourselves off this reliance on the dollar in the same breath they come out and you saw some of the comments from the foreign exchange administration official saying we believe in the US treasury market. And she’s saying something that the premiere of China said he was very worried about a couple of weeks ago. Are there cracks or fissure starting to form for PRC message management?

Todd G. Everts: It’s very difficult to understand the motive behind any central bank governor or any bank and what their true policy would be because they’ve got to report in real terms in their own currency, they don’t have to report in US dollars so it’s important for them to be able to because they have to report to send the right message is going to benefit them.

Patricia: Todd, Patricia here again. We were just wondering what’s your opinion about the Yuan? You know today, we actually found that the 6 months non deliverable fowards actually turns positive, actually forecasting an appreciation of the Yuan for the first time since late last year really.

Todd G. Everts: It would appear that because the US has had a mission for the last 5+ years to see the Yuan value go down against the US dollar to make it US products more competitive. It would seem like that process could occur over the weeks and months to come.

Host: Here’s a question here since we’re talking about the currency restructuring and what’s involved and what isn’t. Cathy writes in saying: Do you think that the massive gold and silver short positions held by JPM Chase and a couple others have the potential to destabilize the markets if the dollar is basically on the verge of some sort of a secular decline, you understand the question?

Todd G. Everts: I understand the question, I’m not up to speed on what the totality of those short positions are and what effect those can have completely on the market but the fact is that gold and silver…I can’t see that they’re going to continue to appreciate in dramatic fashion because we still don’t have true inflation. If the markets continue to stay at the level they are and rise then we’ll start to see inflation creep back in and we’re going to see more volatility in gold and silver.

Host: I hear that 2010, 2011 inflation is going to be a raging problem, do you subscribe to that?

Todd G. Everts: If the bailout plan doesn’t work and they are going to continue to have to throw good money at bad investments, they continue to print money and if the US currency doesn’t continue to be the standard we’re definitely going to have much, much higher inflation.