D. McHattie

What's Holding the Gold ETF Back?

It's interesting, many deflationists correctly point out that deleveraging and unemployment will put a cap on demand here in the US.

But the US isn't the sole source of demand.

Most of China's 1.3B citizens still have a 3rd world living standard, despite the fact that they are producing a veritable wealth of textiles, electronics, manufactured goods.

With it's 25% increase in auto sales, the Chinese have shown that they like 'stuff' too.

The reason we had low inflation in the first half of this decade was China.

The reason we'll have high inflation for the next 10-20 years is also China.