GOLD 0.51% $1,391.7 gold futures

SP I guess what i question is this money printing hypothesis of...

  1. cya
    3,836 Posts.
    SP I guess what i question is this money printing hypothesis of golds rises or falls.....

    Oil rose in the late 70s because there was a situation where supply might be totally cut off, something is always going to go up in cost if supply get constrained or cut off

    People have been waring us about foot shortages for years, those with knowledge in this area have been screaming about the coming crisis for years. We are simply reducing thee arable land under cultivation and diverting crops to bio fuels

    Similar with oil the peak oilers have been warning of peak oil in 2010

    Now the price going up is of course inflationary...but the underlying cause is lack of supply....iuts not because Berannke has been printing money its because there isn't enough to go around

    This why hyperinflation is near impossible, as soon as prices rise more than say 20% the economy collapses and revolution occurs

    Imagine if price rose 200%? by feeding deb t into the system for decades the system has become so fragile that large amounts of inflation will just destroy it

    Thats what is silly about it, here we have the greatest debt and asset price growth in economic history and people keep suggesting that hyperinflation is about to happen (what the hell was the last decade if that wasnt inflation)

    When the inflation has been completely out of control for decades. When oil rises from 15-150 then thats already hyperinflation. when derivative go to 450trillion in a decade from ground zero and investment banks leverage themselves 70/1 then we dont have to wait for more evidence.

    But gold isnt going up and down with inflation, its going up and down with risk. Gold hardly moved from 1981 to 2000, yet the charlatan gold commentators wax on about gold going up with inflation or money printing, yet when you point out there is zero proof things go silent

 
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