Hi from80,Nice question mate, when US put more money in the...

Hi from80,

Nice question mate, when US put more money in the market or economy the value of their currency should in theory fall and as you see in the past it would make oil goes up and of course gold and it would be more expensive for american to buy food and clothes as a lot of these stuff come from other countries and since their dollar worth less they have to pay more for their goods coming from different country now you have inflation.

US is in a big trouble, 700 billion will not be enough to fix their problems like anything else in life when you say 700 billion you might have to double that to 1.4 trillion that is still conservative amount not only that they may have to lower interest rate more, another recipie for inflation...... but it is only good for gold.
It is bear market but for gold and oil it is still bull market.
AS you remember they already spent 200 billion for Fredie and Fannie and 85 billion for AIG and there were others so total already over 1 trillion, people forget they are only told 700 billion poor american tax payers.
This situation will not be good for US dollar in the long run, they may go up for a while as confidence return but soon they will realise that the problem just begins and there is no way the companies in the US delivering profits when nobody buys their products,we will find out soon from company reports and 700 billion is not going to fix fundamental economic problems in the US.
Well all that is only good for GOLD BULLS but it may take time so just wait.

Cheers.