for gold bugs, page-13

Mate, the definition of inflation "excessive growth in money supply" ...agreed?

>>>hyperinflation is 50% or more of inflation am i right or wrong?<<<

That's debatable as there are differing opinions

>>>the usd is in uptrend right or wrong?<<<

That depends upon over what time frame your looking at the price

>>>the gold price is influenced by usd,oil, economy, fear of economy/war, bank runs am i right or wrong?<<<

The gold price is influenced by social and economic uncertainty short term, currency debasement long term.
Ultimately it is the latter that has been driving the gold price since 2001 and other factors that have had short term influence such as the current deflationary scare.

>>>what happens to the dollars where value has been lost?
do they dissapear?
a lot of notes are replaced right or wrong?<<<

Not EXACTLY sure what your asking/saying, but will assume your referring to the current asset price destruction. The question is then....Can $$$ be rplaced faster than they are being destroyed?

My answer to that is CATEGORICALLY YES!
The US has NO option other than to inflate and devalue the USD and what is more they are doing it. Obama will do everything in his pwoer to assist that end.

Remember during the 1997 Asian currency crisis when the worlds' economy was becoming overwhelmed with deflationary pressures. There was a world-wide concerted re-inflation and the end result was asset inflation in real estate and stocks. We are now witnessing a re-inflation that will flow into precious metals and most commodities. Only this time it will come with the destruction of real estate and stock prices as investors shift focus.

>>>is stimulus packages good for freeing up libor/lending?<<<

We discussed this the other day and I ask the question of you. Have they helped in the past 2 decades?
All the Fed and CB's banks of the world have achieved through stimulus packages is to stimulate over extension of corporate and personal finances like no other time in history. It has been irresponsible beyond comprehension and has fostered sloppy, greedy and questionable management practices which has resulted in the litany of bankruptcies we now face.
And what is the Fed's response......let's put up more $$$$.
Until we are prepared to swallow the medicine through higher rates and coporate and private collapses the situation will compound.
I said the other day that US treasuries are a disaster in the making.
When foreign holders of short-term treasuries flee for the exits you are going to see the next chapter in the on-going USD story.
What do the US government do then?
Raise rates in the face of declining economic activity?

I don't think so, they don't have the B@#&$

Which brings us back to NEGATIVE REAL RATES!

>>>it's all fairly simple ain't it mate<<<

Ummm yes mate it is. Some would say a "no brainer" infact.


PS. Remember Paul Volcker. He was the one that bought the inflation of the 70's early 80's under control. He did it bt raising rates to high double digits. Ben Bernanke is no Paul Volcker. And it's no coicidence that Gold broke out above $450US within months of him taking charge, :) back at you