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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (100362)4/24/2013 9:19:30 PM
From: carranza21 Recommendation  Read Replies (2) | Respond to of 217764
 
--- Wouldn't that mean that the price of gold in that deflating currency would fall rather than rise? ---

That is certainly the conventional wisdom.

Whether it will happen, I don't know.

I like the idea of lower prices. But when velocity picks up, as no doubt it will, there will be an easing of deflationary pressures.

We have learned a valuable lesson: QE does not lead to higher measures of money in play, higher velocity of money or GDP growth. Because it has been so ineffective, it is possible that the fears of what may happen when it ends or is curtailed may well be highly exaggerated.

There is a huge pile of money held by banks as excess reserves. It is doing nothing. It will enter the economy at some point. We'll certainly see inflation then.

research.stlouisfed.org



To: Maurice Winn who wrote (100362)4/25/2013 5:50:15 AM
From: dalroi  Read Replies (1) | Respond to of 217764
 
Perhaps the hordes of hoarding Gold Bugs have got an outlook as bleak as the "houses always go up in price" speculators who went bust in droves. Same as those speculating in the Biotelecosmictechdot.com mania of the 1990s leading to the Y2K peak.

indeed and it will happen

BUT first i want to relive biotech boom off the late 1990-2000 :-)
then unload to bag to j*** come late