retired aviator

Don't Expect Hyperinflation for U.S. Economy

Even the large money supply increases very likely to come need not cause price inflation at an unusually high rate. See my website.

Clarification of Gold Comments in Seeking Alpha Live Discussion

I agree that gold seems high at $900+ an ounce! 'Gold bugs' are insisting that $900 will seem low soon, but you hit on the key point that it 'pays no interest'. An ounce of gold is forever an ounce of gold with zero growth, making it more of a hedge than an investment. Growth happens to good businesses (stocks), but not held commodities. I'd like to buy a piece of good businesses now (at recession-level prices) that will have inevitable sales growth as their markets grow. At some point in the future, those who have bid gold up to $1000 (or perhaps significantly higher) will realize gold has no growth and I expect it will fall from the $1000 level back to earth.

Gold has done great in the last decade and also did great in the 1970's. This has encouraged a lot of investors to seek its perceived safety. Many don't realize though that from 1980 to 2000 gold languished during the stock boom and had a negative return of 65% nominally and 90% inflation-adjusted. That's a pretty miserable 20 years, as you say, with "no interest". I wouldn't put a lot of chips into gold now as sooner or later I think that part of the cycle is likely to repeat.