Does the Fed want gold to rise to show there are no fears of deflation?
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Chris has some interesting views on the Fed’s goal of positive inflation and how they will need the gold price to rise to accomplish this.
Central banks “print” gold by lending the same bar out numerous times. They also can overstate their reserves. The U.S. has not had an audit since the 1950s. China refuses to give their numbers. It is impossible to know what the price of gold should be because you can not mark it to market, there are too many variables.
Original jj
.”everyone living on this planet is well aware the Feds version of inflation vs reality is like night and day+…agree but disagree…..they should know but one of the biggest problem of our time on the planet is cognitive dissonance
irishtony2
In my case seabhac, my beliefs do match reality! At least I certainly hope so!
I would argue if there was deflation stocks would be collapsing and bonds would be rallying hard. Neither of those things have happened in a long time. The Fed has the inflation they want, and they have it materializing right where they want it to, in stocks and real estate.
Those were excellent comments Chris. Your intuition is spot on the money. We should anticipate golds eventual price rise to be “controlled” if that is an acceptable use of the term. A preference exists for confirmation of inflation (at least the inverse of deflation trends that now exist) and therefore a means to telegraph inflation and expectations to further inflation to the market. Gold is the tool that will accomplish that role most effectively provided it does not occur under conditions where the price spirals out of control and thus destabilize the dollar.
So you are still alive? Good!
So far, so good. Still alive according to my wife. I have had a busy week. I gave up smoking, coffee and sugar for lent (no, I am not Catholic…it’s just an expression!). The coffee was easy……sugar a little harder….but the smoking has been a brutal trial by fire and flames and to be very honest there has been some backsliding. Hopefully I will make it at least two weeks and maybe I can call it a success. Every once in awhile it is good to deprive yourself an indulgence especially if the result is good for your health. Cheers.
I quit smoking by going to Cope, on the advice of a crazy physician friend and then quit the Cope.
You are changing a lot of habits in a short period of time.
Best
good for you birdman. btw…have you noticed that marijuana seems to be a badge of honor whereas if you smoke cigarettes you are a pariah
irishtony2
Lets face it guys everyone living on this planet is well aware the Feds version of inflation vs reality is like night and day….it costs me more to live every month, every year!
Why the street gives the CPI data any credence is beyond me.
GOLD, is the only currency that can not be printed at will be any government…do you really think the feds would want to use Gold as an indication of true inflation….that really is a stretch….why not just BS the CPI data and other inflation data…????