thegreatyakk

India Buying Gold Again

What is your source for what the "smart" money is doing?

Gold: The Last Carry Trade

CLH - "Hyperinflation or any kind of inflation is not possible during a credit collapse. Buying gold now makes no sense. Its interesting how false information during time of panic is given out and believed by so many. Gold will continue to fall as the dollar becomes more valuable."

Seems true on the surface, but the fact of the matter is that the Federal Reserve ALWAYS overestimates required money supply, rather than underestimating. In other words, the Fed errs on the side of low interest rates and excessive liquidity in times of crisis because of their predominantly Keynesian views. The only exception I can think of was Volcker back in the 80s, who went to great pains to control money growth in an effort to kill inflation. The current chairman will do no such thing, and the end result (realized after the fact) will be that interest rates were kept too low for too long.