If the Fed drop the ball by moving too quickly they could endanger the fragile economic recovery; If they move too slowly they could fire up inflation in the near term.

In the near term gold prices will oscillate as this debate ebbs and flows. We believe long term fundamental arguments for gold are still very much intact. The world is still in the midst of a massive economic storm stretching from Asia to Europe and to the U.S.

In an article published in MIT's Technology Weekly titled "How Technology Is Destroying Jobs" a very interesting analysis of the modern economic technology driven model is made. The article written by David Rodman reviews MIT research into the relationship between productivity gains and employment and very clearly demonstrates that the social contract at the heart of the capitalist system may be in trouble. Essentially even though the economy may grow and industry may profit the benefits are not being translated in terms of jobs and by extension worker earnings. Interesting stuff, and this thesis may make the entire policy of QE, its attack on pensions and savers plus the ever increasing social unrest seen all around the world; be seen for what it is - unorthodox and very, very risky.