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To: Toddsterpatriot
You think they're doing it now? Why?

They would be following Volker's advice that he learned in the 70's which is that the price of gold is often an indicator of future perceived inflation. Keeping the gold price suppressed helps dispel inflation psychology. That leaves them with the simpler problem of deflation psychology and they have plenty of tools for that (e.g. debt monetization). Their goal is a balance somewhere in the middle.

59 posted on 05/05/2009 12:34:52 PM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: palmer

A rising price of gold should kill deflation psychology.


60 posted on 05/05/2009 12:37:36 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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