Posted on 10/20/2010 2:51:48 PM PDT by arthurus
What is Bernanke really doing when it comes to all his rhetoric about stimulating the economy more? Like a good magician, he is waving one hand (QE2) while the other hand fights deflation. The waving QE2 hand is just an illusion.
In the past couple weeks I have been trying to impress upon readers that Bernanke has been repeatedly trying to threaten quantitative easing round two (QE2) and in doing so, has managed to accomplish what he has set out to do without actually having to do any actual easing come November 3rd when the Fed Board meets again.
(Excerpt) Read more at seekingalpha.com ...
Gold, beans, and lead.
It’s interesting that the author disagrees with Schiff, and yet both like to be in gold. The first one likes it as protection against the coming inflation, the author likes it while expecting deflation. I’m not the first time to remark this phenomenon of gold being used as a hedge for both inflation and deflation. I still don’t get any reasoning why this would make any sense.
The gamblers(stocks) vs the dooms day-ers(Gold). Both can’t be right, right now my money is on the gold people. Although I still own a stock fund.
Seek out a source of water.
Gold maintains its value in both scenarios while the dollar is not so sure. Actually this fellow is talking about a price collapse, not directly deflation. Deflation doesn’t happen unless central banks pull money out of circulation. Prices can decline if all the funny money off the digital printing presses is tied up sitting undeployed on various ledgers. That is one possible source for a sudden general price rise- the banks and businesses and governments and Soroses with all the cash try to get rid of the mountains of dollars all at once.
Gold, beans, and lead, and defensible land.
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