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Message: Re: Gold hits 2-month high, inflation concerns resurface
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Aug 04, 2009 03:25PM
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Aug 04, 2009 07:41PM
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Aug 04, 2009 09:47PM
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Aug 05, 2009 11:02AM
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Aug 05, 2009 12:52PM

Raekwan,

Like everything in economics, nothing is certain. We assume that inflation will be coming down the pike because of the incredible excess overprinting of money and high debt loads. This is what theory says. In practice though, there are many other factors that will influence whether inflation occurs, such as whether there is growth in the economy, whether there is confidence in a currency, etc.

I think he media (and economists) are gun-shy right now and will only "suggest" what "might" happen. FWIW, I also think that there will be some serious inflation, if only to allow the US to try and "inflate" its way out of debt.

I believe this is partly why gold has been climbing lately....all the more reason to have holdings that invest in gold one way or another.

Trainboy

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