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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: The Barracuda™ who wrote (34702)	5/31/1999 1:43:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 116766

Government doesn't create inflation. The will of the people does. Government only lets the will reign to varying degrees. The preference of the public is to have inflation, because it appears to make them more wealthy when in actuality it is making them more poor. If you don't agree, just reflect on the preference of Americans for home price inflation. The prices of goods would have risen regardless of FED activity. A good which must be produced will have to rise in price since its production cost has risen. This is independent of whether there is more money available. The FED wasn't especially accommodative during the '70s though they did cyclically open the money floodgates. The proof is seen in the real money supply growth of that period. They also cyclically closed the gates, but that wasn't the reason behind the inflation. Inflation has nothing to do with what is going on with the gold market. That includes any laws government passed with respect to gold. Gold is the last thing to respond to an inflation. The reason is simply that inflation must be painfully evident before the public starts chasing it, whereas the reason for the inflation has already caused other commodities to rise. When gold is finally racing to a top deflationary forces are already in place. That's why some believe gold does best in a deflation. They're assessment is equivalent to a view that the greedy speculating public is reliably late. That was Gould's motivation, to take advantage of public greed to satisfy his own. There was no massive inflation during the 19th or any century before the 20th. Monopoly labor didn't exist before the 20th. It is only the FED that can bust the inflationary will of the people.