hedging, page-64

Sorry ChristopherC, what were you trying to teach me?

Basically, the US and the world could have inflation, deflation, inflation or stagflation. IE. Inflation without growth: . I believe the last one is where we're heading. It's why I said some pundits are predicting POG to double. If POG does double and world growth slows, the A$. could fall to US50c. Thus POG in A$ would be $6000.Then because of said inflation, corresponding costs would also rise. Meaning any deferment in RMS' hedging at below $2000/oz could be serious trouble for the company. And if they couldn't produce it due to any long ongoing effects of C19, they would be in a hole. That's what the heading is about, HEDGING.

But money printing itself doesn't cause inflation. Look what happened after the GFC. The FED printed but neither CPI or GDP showed any marked improvement. Japan has been printing huge amounts of money for 30 years, yet the NIKKEI is still less than half of what it was and their economy is deflating. The reason for these events is, of course, because the 'VELOCITY OF MONEY' is still very slow.

The FED could print 30T but if people only bank it and don't spend it, it will do nothing for growth nor inflation, (as per Japan). It's why I'm saying that by giving money to Main St, rather than Wall St, money has got a greater chance of being spent causing inflation, but no certainty.

Again I don't know what I'm supposed to be learning?