MV=Py. Money Supply x Velocity = Price x Quantity of Economic Production. I think we who are heavily in gold as a hedge are all looking for inflation right now, since the other reason for holding it - the prospect of an economic meltdown - is diminishing (hope it continues). William Watson in his National Post article today reviewed the economic theory that inflation (P for Price in the fomula above) results not just from increases in Money Supply but from the interaction between Velocity of Transactions and Money Supply. Enlightening. Money Supply can go on endlessly increasing as it is right now, but as long as the velocity of transactions is slowed by doubt and fear, opportunism, hoarding capital, etc., inflation will certainly stay down. But as soon as the economy begins to revive and transactions increase as these factors come under control we can expect a quite sudden and dramatic rise in inflation, a real test for Bernanke but an opportunity for us hedgers in gold. To quote Baires... "Go Tyhee!" Isaiah