GOLD 0.51% $1,391.7 gold futures

Although, quantitative easing is associated with increased...

  1. 30 Posts.
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    Although, quantitative easing is associated with increased inflation, the example of the Weimar Republic the money printing ocured well before the crisis in 1923. Times were tough and people put thier money under the mattress, the inflation peaked when the economy improved and people started to spend. If nearly half of US currency is held by overseas institutions my concern would be when this currency comes flooding back to the US. This adds another layer of complexity to an already complex problem, with Gold I am very interested in who is in the background quietly buying the metal without spooking the market too much. This wall of buyers do not normally participate in this market consequentially, short positions have been destroyed in the past couple of weeks by these institutional buyers. Using tradional charting Gold appears overheated but these aren't normal times, history will repeat but never exactly as the previous time. My theory is Gold will climb steady for the next three years, there will be small corrections, the FED is sowing the seeds of inflation and will loose control of it when the economy picks up. Once that cash is created it is more difficult to destroy, when this becomes self evident then inflation starts climbing.
 
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