*** Gold declined (Dec. contracts) to under $470. We're moving our buying target up to $450, and hope to see a correction below that amount. As we said above, we don't know what will happen, but we think we will enjoy the show more holding gold rather than holding California houses or Wall Street stocks.

"Precious metals are currently the in-form sector, having recently emerged from lengthy consolidations over the previous eighteen months or more," our friend David Fuller tells us.

"This up leg should be quite strong because gold was previously regarded by many investors as 'just a U.S. dollar story'. Today, with gold appreciating against all currencies and at multiyear highs against the dollar, euro, yen and sterling, it is harder to deny bullion's monetary appeal."

*** Some of the new taxis in London have television sets in them. Friday, while en route to Westminster, we watched an amazing show. A group of Indians in Mumbai were learning how to speak English with a Midwestern American accent. They held their chins down in order to get the 'aahhh' sound sufficiently broad and lazy. Then, they practiced moronic
conversations:

"Aahh wuz down at the Wahllmart yestahday..."

"Oh yeeaah...whut did you buyyye?"

"Well...maah husband wanted a new fishin' pole...but Aahh tol' hiymm..."

The show was frightening. These poor people...they are working so hard to take jobs from Americans.

You don't get what you want out of life, we keep saying; you get what you deserve. Surely, these people deserve whatever they get.

*** We went home to the garage - ooops, the "coach house" - last night. We are still trying to understand how things get so out of whack that you have to spend $10,000 a month to live in such a place here in London, while in other cities, you could get a much better place for half the price. Everything reverses to the mean, but it can take a long time.

We recall visiting London in 1983. The dollar was nearly equal to the pound. The city seemed cheap back then, and a bit dowdy: Hotel rooms were shabby; apartments were simple, drafty, and poorly furnished; restaurants were few, simple and affordable.

Now, there is hardly a square meter of South Kensington that has not been fixed up and rented out. Restaurants overflow onto the sidewalk...ever so chic. Walking to the tube station, we pass one Ferrari dealership and another Lamborghini monger.

Times change. The world turns. Means are regressed to...and overshot.

Whence this cometh, we recalleth not. But it makes our point: The world turns.

Bill Bonner is the President of Agora Publishing.  For more on Bill Bonner, visit The Daily Reckoning.