Posted on 09/18/2013 11:34:54 AM PDT by SeekAndFind
“tanked” — I don’t think they know what that word really means.
Although, in a rare occurance, they actually did a reasonable job of describing the gold spike as a “spike”. Usually, a 4% move would have evoked terms like “skyrocketed”.
If they can devalue money faster than the inflation level on the debt, in theory, they pay it down.
Stocks tend to rise along with inflation, because they are a reflection of the company’s assets. Dividends may rise with time with inflation, as companies raise prices along with inflation. Stocks rise because of inflation.
Precious metals rise because they are seen as a safe haven in the face of inflation. They are a hedge against inflation, but have no potential cash flow like stocks.
Both stocks and precious metals are rising because the federal reserve just said we are going to keep printing money to the tune of $85 billion to keep buying federal debt.
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