Louis Paquette

Deflation Now; Inflation's Coming

Gilbert,

"I don't know where gold will be in the next 6 month. 200 or 2000 $."

I know what you mean. On the one hand with all commodities deflating as they are, and looking at a ten year chart, sometimes I wonder if gold can move up.

The thing I am looking at now is this almost unprecedented money supply growth. It's not that I thing gold is going to go up as much as the value of each dollar is going to fall they way the authorities are printing the stuff.

I agree with this Peter Cooper when he writes::

"Money supply out of control
Another banker today showed me a chart of US money supply growth over the past few months, and highlighted a 111% increase. This compared with something like 15% money supply growth in the early 1930s as the US authorities grappled with the Great Depression.

There is an absolute tsunami of money coming into the system. What happens when the supply of something exceeds the demand? The price drops. And that is exactly what is going to happen to the US dollar - the authorities are about to inflate away their debt problem."

Source: seekingalpha.com/artic...