First, did you notice? Gold shot up $25 on Friday. At this rate, it will be at $1,600 by the end of this week.
Why? The smart money is betting that the feds will keep pushing inflation.
But today, let’s ignore the feds and talk about what’s happening in the economy.
You saw the latest GDP numbers last week. In the first quarter, the economy grew at a 1.8% annual rate, said the estimate. That is equivalent to the average real rate of growth for the US economy since 1925. The only trouble is, this growth isn’t real. It’s counterfeit. It’s phony.
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Preparing Your Investments for an Inflationary Future
Let the boxing match begin!…In the near corner, we find deflation, with its furious fists of debt liquidation and credit contraction… And in the far corner, we’ve got Ben Bernanke’s printing press, with its menacing inflationary uppercut.
Inflation will win this contest eventually, but the match might go the full 12 rounds.
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