Just want to get some peoples thoughts on the POS considering recent release of US inflation figures and the fact they are surprisingly low. Ben Bernake seems to be pulling a rabbit out of the hat here as with all the cash injection into the Bonds market would seem to point to higher inflation figures for the US.
The POS and POG seems to go up when inflation goes up, which makes sense.
Inflation figure go up when people have too much money \ when the government prints too much money, etc.
Why aren't the inflation figures going up considering the amount of money being pumped into the economy?
My thoughts are the following: High unemployment has a major effect here. The fact there is a lot of catious buyers out there trying to pay down their existing debt and the fact the stimulous is not going directly back into the economy to increase wages, increase prosperity, etc rather they are just trying to maintain status quo.
Just researching some of this stuff so very interested to hear peoples views here.
As a result is Silver and Gold in the short term going to offer large returns? I think Silver will be the performer out of the 2.
Will we see high inflation figures for the US when the cash injection starts to flow through the economy? If unemployment stays high I think people will stay cautious and as a result the figures will stay low.
