- the end of gold - , page-64

YC is making the assumption that the Fed stimulus will work and inflation will come bounding in

the reality through economic history isnt that clear

central banks have failed to cause inflation in the past, they are printing as fast as they can but the money supply is shrinking, this is because of the what is called debt deflation (read Irwin Fisher and Herman Minsky)

Stever Keen is the guy thats got it all right to date

http://www.debtdeflation.com/blogs/2009/01/23/ballmer-gets-it/#comments

If Keen is right there is no where to hide including gold

Robert Pretcher dosent rule out $200 gold

http://www.debtdeflation.com/blogs/2009/01/23/ballmer-gets-it/#comments

Deflation hits everything the central banks are losing the fight , there simply isnt enough stimulus to make inflation a factor

for every $1 the Fed pumps in 95c survives

http://gregmankiw.blogspot.com/2009/01/disappearing-money-multiplier.html

Here is another link

http://www.rgemonitor.com/globalmacro-monitor/255279/limited_purpose_banking_putting_an_end_to_financial_crises

sorry to say but history isnt on the side of ag or precious metals

ag is certainly in seriously bad shape if this continues farmers with high debt levels will get crushed, it happened in the 20s with US farm incomes they didnt recover till the late 40s

but those putting their faith in simplistic notions of fiat currency and precious metals are in for an equally scary ride