"...The Chinese are decelerating their US Treasury instrument purchases which would have impacted rates if it were not for the Fed monetizing the US Treasury by stepping in where the Chinese are stepping out. Up to this week all the intelligencia argued the Chinese could not and would not do that.
2. The argument rages on between monetary inflation resulting in price inflation and a depression business condition in which few can understand how hyperinflation can occur. The fact that this is how every hyperinflation has occurred seems to not make it past the spin and simple incapacity to understand.
We have had two periods of hyperinflation in the USA. The first was the collapse of the currency, the Continental. The second was the collapse of the currency, the Confederate dollar. The third is in process now.
3. The argument goes on concerning commodity values, but what is not in focus is that all major commodities are dollar denominated in their major markets. The dollar will underwrite the next major bull phase in commodities.
4. In times of hyperinflation, gold generally has a stable value since a government printing money has less control of its supply.
When:
Let’s give credit to the best of market timers, Martin Armstrong. He calls for the earliest gold turn on April 19th versus the latest point of turn in mid June. If it is June he sees this as indicative of $5000 gold.
How High:
Let’s turn over the baton to Alf fields at $6000.
I will stay with $1650 until we trade there in the not too distant future." Read all here
