The TSX ended the day on a positive note, climbing 42.35 to 11,961.06 on Wednesday, while the TSX Venture declined 1.96 points to 1,556.80.

The metals and mining sector also shone, gaining 1.32%, while energy moved 0.93% higher.

In the inflation/deflation debate between John Williams and Bob Hoye on my radio show, Bob pointed out that in the German hyperinflation, Germany did not have the world’s reserve currency. Nor did it have a military that ruled the world. Hoye also points out that in periods of massive global credit deflation, the senior currency generally is the strongest currency.

Williams, on the other hand, believes the dollar is destined to get weaker to the point of absolute worthlessness. With a dollar that is worthless, the U.S. will fall into a hyperinflation, according to Williams, even though with each printing of money, debt continues to grow ever more rapidly than income. 

The TSX ended the day in the red again on Tuesday, down 45.13 points to 11,918.71, while the TSX Venture slid 3.17 points to 1,558.76.

In terms of sector moves, metals and mining declined 0.83%, while energy fell 0.63%.

Meanwhile, the price of gold also declined, falling $1.70 to $1,122.30 an ounce.

The policies of the politicians have been to inflate, inflate, and inflate some more. And they have been quite successful in doing that. Since the Federal Reserve was created in 1913, the dollar has lost something like 97% of is purchasing power. So the boys controlling the printing presses have done quite well in their creation of deflation, except for a period of time in the 1930s when the purchasing power rose considerably. 

The TSX had a flat start to the week, falling 11.30 points to end the day at 11,963.84 while the TSX Venture climbed four points to 1,561.93.

The metals and mining sector also ended slightly underwater, down 0.19%, while the energy sector moved 0.13% lower.

Meanwhile, the gold price tumbled $11.20 to $1,124 an ounce, as did several gold stocks, including Yamana Gold (TSX: T-YRI), down 4.1% to $10.44, Iamgold (TSX: T-IMG), which fell 3.1% to $15.62 and Barrick Gold (TSX: T-ABX), which was down 1.7% to $40.84.

I can virtually guarantee that what I’m about to suggest isn’t on anybody’s radar screen.  But before I share my prediction, a little background analysis is in order.

There have been seven previous bull markets that were born in the depths of vicious bear markets similar to what we just went through.  Each one of those bulls racked up impressive gains during the initial thrust out of the final low.  Throwing out the `32 to `37 bull as an anomaly not likely to be repeated, the average gain for the first two legs of bulls with similar DNA as our own has been between 41% and 73%.  After the second leg each one of these bulls underwent a mild corrective pullback of 8% to 14%.

Perhaps it’s because I’m no spring chicken myself any more. But over the years, I have come to understand that those who have lived a few years longer and have experienced more of life can very often offer valuable information to younger folks. Since my father passed away at the age of 85 on Dec. 31, 2009, I have frequently recalled many bits of wisdom he passed along to me that I have incorporated into my value system. When we are very young—from about our early teens through early twenties, we think we know it all. Then after we have had our heads bashed in a few times, we learn we are quite ignorant. Even the more stubborn among us finally start to pay attention to the older, wiser folks among us. 

Following is a brief summary of key markets by Roger Wiegand, who I partner with in the production of Trader Tracks, which Roger writes for investors who are inclined to trade. The following is excerpted each week from Trader Tracks letter. This is one small part of Roger’s weekly publication titled Trader Tracks, which is available through Taylor Hard Money Advisors, Inc. Trader Tracks (Call 718-457-1426.)

The TSX ended the trading week on a high note, posting gains of 150.17 points on Friday to close at 11,975.14, while the TSX Venture moved 16.09 points higher to 1,557.93.

The metals and mining sector shone on Friday, gaining 3.8%, while energy climbed 1.54%. The price of gold also moved higher, up $2.10 to $1,135.20 an ounce

Our Model Portfolio finished last week, well off its highs for this “B” wave up, which hit a high on January 8, 2010.

Despite the unprecedented “stimulus” asset prices around the globe have not been able to pull up to their 2008 highs.