Gold to hit $1,350 - $1,400 by late Spring - John Embry

[SirJosephPorter]

IMO, under $1100, gold is a buy, not as a speculative investment but as a hedge against inflation, which I think is coming sooner or later...

I personally don't think inflation is much of a threat. Federal reserve, Bank of Canada are always watching our for inflation. There is already talk of increasing interest rates.

Getting rid fo inflation is never pleasant, there will be a lot of pain. However, since the inflationary days of 80s, there is a consensus among the world countries that inflation is evil and must be got rid of.

Where there is a will, there is a way, and will very much exists to keep inflation low.

 

[earth_as_one]

When I do the math, I can't see how rampant inflation can be avoided.

The US has a 12 trillion dollar debt and a 1.56 trillion annual deficit. To service the debt, the US prints money money and borrows.

Record U.S. budget deficit renews China's concern about its dollar assets

You can't print and borrow money like that without consequences. Sooner or later those dollars have to come back on the market, leading to a devaluation of the $US and as a result inflation.

 

[SirJosephPorter]

When I do the math, I can't see how rampant inflation can be avoided.

The US has a 12 trillion dollar debt and a 1.56 trillion annual deficit. To service the debt, the US prints money money and borrows.

Record U.S. budget deficit renews China's concern about its dollar assets

You can't print and borrow money like that without consequences. Sooner or later those dollars have to come back on the market, leading to a devaluation of the $US and as a result inflation.

We know how to get rid of inflation, it is not rocket science. While government really cannot do much to reduce unemployment (jobs must be created by the private sector for them to be long lasting), government can easily get rid of inflation.

If inflation is 10%, put up interest rates to 12%, inflation will disappear. In the past, governments have shown their resolve to fight inflation. Assuming they show the same resolve, inflation can be beaten. Of course it will cause plenty of pain (remember the 19% interest rate and how much pain it caused)? But inflation can be beaten, and will be beaten.

Of course, if governments lose their resolve, then that is a different matter altogether. But at least for the past 20 years, fighting inflation has been the priority of governments all over the world.

 

[ironsides]

Found this interesting, if the figures are accurate, things do not look to bad for the future.

Financial Forecast Center

U.S. Inflation Rate Forecast

 

[AnnaG]

lol It all goes to show that in human tendencies to complicate the hell out of stuff, people suffer. It kind of stems from the urge to have more than one can use.

 

[petros]

Gold being the sun element to the ruling sun worshippers is a holy item which gives it it's value and yes Anna it is eaten and consumed ritualistically by bizzare factions of the elitist classes.

It will lose all it's value in 2020 during the next economic bull run prior to the next economic crash in 2031.

The price of gold follows 22 year sun based cycle on solar minimums and maximums. Always has, always will.