Loading ...So if everybody and their uncle is saying inflation will be a problem, don’t be surprised if this distorted value financial system ends up going into a horrendous DEFLATION problem instead, that nobody perceived possible with all the money creation by the Fed.
The excess money seems to be going into bank accounts and bonds driving rates down. The other receptacles used as inflation hedges are real estate and stocks. They seem over priced to me, like Silver at $50 and Gold at $850 in 1980.
Besides that, the Fed has been fighting a deflation re low rates, some commodities have been falling in value and some rising. So there is no uniform inflation or uniform deflation. Its a mixed bag going on.
Deflation won’t hurt Gold. They last time in the 1930s the gov’t itself DROPPED the dollar and raised Gold by 78%, $19 to $34 to get prices higher. Don’t worry about gold. $1800 plus 78% is $3200, and miners will get very profitable. Beside they will probably need to go back to a gold backed currency after this system takes a crap for itself.
Commodity charts: