K7D

Enlightening the Gold Bugs

"The dollar is gaining strength day by day, and gold bugs continue to trumpet the collapse of the fiat."

The dollar index was at 87 at the beginning of the month. Now it's at 80...in what way is that gaining strength?

"The gold bugs continue to forecast runaway inflation"

"And gold bugs have so much faith in the Fed to create inflation"

I don't think Mr. Caffee knows what inflation is. The Fed can absolutely create inflation. They have been doing a very good job of it for months. Inflation of course being an expansion of the money supply. Rising or falling prices...well that results from the expansion and contraction of the money supply. Can the Fed increase prices? Not per se, but they can certainly create inflation.

So Mr. Caffee, what is your advice during this turbulent time? Buy 10yr Treasury Bonds at 2%?