Reason No. 1 to avoid gold: There is no inflation

WOW are you wrong! I have about 8 Trillion new reasons why.

Mark
editor Digital Gold Currency Magazine

The dollar is being value less everyday because the printing presses are running 24X7 in the US, printing fiat currency. The US banks are all technically bankrupt, accounting rules change and free fiat currency is only thing keeping their doors open from a total system collapse. The only reason there is housing deflation today in the market, is because of the massive US unemployment numbers. And don't forget the US Federal Reserve is aggressively trying to control gold's true value by talking up the recovery. Your opinion is clearly deceptive, but it allows us with a clear vision to buy gold cheaply before the total system meltdown that will occur.

The reason there isn't any inflation (yet) is because deflation is a powerful positive feedback loop. When prices are generally going down, people wait to buy stuff until it's even cheaper. And, just like in the 1930's, there is a tendency during deflation to take money out of the banking system -- "mattress money". Mattress money lowers the money component called "velocity".

However, there will come a time when Obama's Partisan Money Machine finally overwhelms the mattress money phenomenon. These days, since "money" isn't based on anything real, and therefore is nothing more than a form of information, and since information spreads much faster now than it did in the 1930's, that means that as soon as prices start to trend upward, the mattress money will go back into circulation.

All at once.

Inflation is also a powerful positive feedback loop. That means that we are likely to see a meltdown very similar to 1923 Germany, only much faster.

Personally, I'm concentrating on putting the soon-to-be worthless money into things that will hold value (or increase in value). Like a good supply of non-perishable food, and a couple of weeks' worth of drinking water. And enough cash to pay my mortgage (in person) for a couple of months of "bank holiday" so that my home can't be repossessed by a mortgage company that would much rather have real estate than worthless dollars. And some ammo, so that I will be able to keep the food, water, and cash.

Now, if I'm wrong, and the meltdown doesn't happen, I'm not any worse off. But it's better to have and not need than it is to need and not have.
--
www.chl-tx.com BHO has given *my* business a fantastic stimulus!

no inflation,what do you buy?electric,food,clothes,resturants,all prices up.Medicene, doctors,congress,gas,sewage,water.

this guy does not live in the real world. I do not fully support gold, but the DJIA changes the components of the average every time a stock fails to support the direction they want it to go and the government changes the components of the CPI every time a component goes up which would show inflation. Gold has out performed stocks (based on the ones used 30 years ago) and holds its own against inflation. It fails miserably against any component controlled by the government

The discussion is clearer, but not solved, when you look at the following equation: money x velocity = number of goods x price of goods.

Now, if the amount of money printed, or the velocity or leverage of that money increase, we have to have inflation, given a certain number of goods to buy. The reason we are seeing deflation right now is that the velocity (leverage) of money has fallen. However, that will end. We won't see leverage return to previous levels, but it will at least stop falling, probably this year. However, the number of dollars (or amount of money) is going to have to increase for many years. Obama's spending and deficits are guaranteed to require an increase in the number of dollars, and therefore inflation, down the road. You can find financial advisors to help position your portfolio at http://www.claroconnect.com

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