[chuckles]

I think what you are showing is the price of gold MUST go higher to keep up with stock inflation.

The way I see the predicament Bernanke is in is, They are buying bonds with counterfeit money. The money is tied up in bonds and OFF the market. At some point, the bonds will liquidate and release the fictitious money into the system. Gold will go up Then and only then. We have printed trillions of dollars to keep this mess afloat, but it will end at some point.

We went through similar times during Carter. Inflation will be rampant and gold will remain constant in dollar terms. as the dollar falls, gold will rise( along with all other commodities.)

Imo, this is why Dems don't seem to care about borrowing and paying back with printed money. As gold goes closer to $5000 an oz., they just look at is as I'm making $50 an hour instead of $20, and gas is $9 a gallon,...so what? Well if you are a saver trying to retire, you are wiped out in 5 years instead of 25. A sound dollar always makes for more steady times for everyone, except politicians.

Another problem might rear it's head when we try to pay back China, or others, with counterfeit money. If they loan us a trillion dollars and we try to pay them back with $600 million, they might just take exception to that with a few missiles. Remember they are just getting a pittance for interest. If the dollar falls too fast, they actually loan us money at negative interest rates. I wouldn't be happy, I doubt they will be. If we weren't America, we would look closer to Argentina. We will have gone under long before the Argentina type rates of 20+%.

[dennisw]

The way I see the predicament Bernanke is in is, They are buying bonds with counterfeit money. The money is tied up in bonds and OFF the market. At some point, the bonds will liquidate and release the fictitious money into the system. Gold will go up Then and only then. We have printed trillions of dollars to keep this mess afloat, but it will end at some point.

What scenario do you see? Why and at what point will the FR start selling its USG Treasury securities? The FR is presently buying (also holding) them at the rate of one trillion a year....I hear the number is this large

 

 

News for federal reserve balance sheet

Daily Beast

1. US Fed balance sheet grows to record large size

   
   

   Reuters ‎- 2 days ago

   NEW YORK (Reuters) - The U.S. Federal Reserve's balance sheet grew to a record large size in the latest week with increased holdings of U.S. ...

   The U.S. Federal Reserve's balance sheet grew to a record large size in the latest week with increased holdings of U.S. government debt, Fed data released on Thursday showed.

   The Fed's balance sheet, a broad gauge of its lending to the financial system, stood at $3.091 trillion on March 6, compared with $3.072 trillion on February 27.

   The Fed's holdings of Treasuries totaled $1.762 trillion as of Wednesday versus $1.750 trillion the previous week.

   The Fed's ownership of mortgage bonds guaranteed by Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and the Government National Mortgage Association (Ginnie Mae) totaled $1.016 trillion on Wednesday, which was little changed from the previous week.

   

    

   The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system was $73.59 billion, unchanged on the week.

   The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $21 million a day compared with an average of $3 million per day the prior week.

    

    

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