RSAAKS

Treasury Yields Hovering at Historic Lows

You make many rational arguments, except the one for Gold. If stocks go down, so will gold. In my view, oil is the commodity which will indicate if and when recovery is in sight. The world can live without gold, but not without oil, at least not until an alternative bio-fuel is found in abundance. Eventually inflation will be here, but the price of oil will reflect it much more than gold will, even if gold rises at that time.

Gold as a Truly Last Resort

Is it possible that even as M increases, V decreases and keeps the economy relatively in status quo. That is quite possible since aging populations (with aging of the boomers into retirement), spending habits and overall spending go way down keeping inflation in check even though interest rates are low. It has been going on in Japan for 15 years, why not here?