Its a good question posed by Kodiak, help me
understand the process where money printing
leads to deflation. In my mind deflation would only
come about if all central banks stopped
printing,gov'ts adopted austerity and consumers
started to truly delever. None of these things are
happening or likely to happen. The US gov'ts idea
of less spending for 2013 is the same amount the
fed will print in one month.
Also consider this easing is no longer an
american only phenomenon now we have the
UK,and BOJ full bore.
Gold in 1975 fell by 50% and I'm sure that year
there was plenty of Errols suggesting the gold bull
run is over however it was just re-loading.
understand the process where money printing
leads to deflation. In my mind deflation would only
come about if all central banks stopped
printing,gov'ts adopted austerity and consumers
started to truly delever. None of these things are
happening or likely to happen. The US gov'ts idea
of less spending for 2013 is the same amount the
fed will print in one month.
Also consider this easing is no longer an
american only phenomenon now we have the
UK,and BOJ full bore.
Gold in 1975 fell by 50% and I'm sure that year
there was plenty of Errols suggesting the gold bull
run is over however it was just re-loading.
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