- The producer price index came out with the biggest number in 40 years.
- Gold is down 6% or 7% for the year and silver is down 14% or so for the year against these levels of inflation, which are at 40-year highs.
- The past few meetings, the Fed has just talked the markets down but has not actually done anything.
- If interest rates do go up aggressively, it puts the world economy at tremendous risk and defaults will become common.
- It is a global problem, so governments will have to find a way to hedge against this tremendous debt bubble by allowing inflation to run at higher levels than expected.
For further details see:
What's Up With Gold?