the Fed inflation numbers a pure propaganda based on manipulated figures M3 and credit are falling faster than at anytime since 1982.........seriously folk here rally against the Fed in everyway they can think of but in the next breath get all goosie on Fed manipulated cpi data, deflation is a shortage of money, inflation is a glut of money, you might get spot price rises in certain sectors like oil but thats not inflation, if energy is overweighted in the CPI calc its going to show an overall rise but its simply how they construct the data not reality
The M3 broad money supply – watched by monetarists as a leading indicator of trouble a year ahead – has been contracting at a rate of 5.6pc over the last three months. This signals future deflation. The Fed's "Monetary Multplier" has dropped to a record low of 0.81, evidence that the banking system is still broken.
Tim Congdon from International Monetary Research said demands for higher capital ratios and continued losses from the credit crisis are both causing banks to cut lending. The risk of a double-dip recession – or worse – is growing by the day.
"It is absurdly premature to think of withdrawing stimulus while bank credit is still sliding. To have allowed this monetary collapse to occur a full 18 months after the financial cataclysm is extreme incompetence. They seem to have forgotten that the lesson of the 1930s was the falling quantity of money," he said.
This idea that gold is inflation hedge is a fallacy, gold did nothing between 1985-2000 and there was loads of inflation
This is what I was talking about months ago, USD stenghtening, gold weakening , AUD weakening , stock market pull back apparent and further weakness imminent
Folks there is a buy gold opp on weakness in the near term, if you love gold so much whats wrong with picking it up when it gets cheaper, gold equities will suffer through the gold pull back, wait for the weakness and back up the truck
