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To: giddy guru who wrote (8270)7/31/2010 10:50:26 AM
From: GROUND ZERO™  Respond to of 218589
 
Yes, this may be very true, but in a situation where money is being printed without anything to back it up, that has to have an inflationary effect on the economy eventually... in fact, isn't this exactly what the Fed is now trying to do, e.g., stop the deflationary cycle by attempting to create inflation?

My point is that when the Fed finally does succeed in creating even the slightest inflation effect, wouldn't that be inflationary by its own definition, and thereby cause all commodities to increase in price, gold included?

GZ