WHY IS GOLD RISING ON DEFLATION...
GOLD USED TO BE A HEDGE ON INFLATION...
WELL...THAT WAS BACK WHEN THE CENTRAL BANKS AND MONEY PRINTERS WHERE UNDER CONTROL...
PRESENTLY THE FED IS PRINTING MONEY LIKE MAD...BUT ITS ALL SITTING IN BANKS AND LARGE COMPANIES WHO HAVE NOTHING TO SPEND IT ON...BECAUSE THE MIDDLE CLASS IS NEARLY EXTINCT IN AMERICA...
THERE IS NO DEMAND...HENCE NO DEMAND FOR MONEY TO EXPAND PLANT AND EQUIPMENT...
THE GOLD BUGS SENSE THAT THE CENTRAL BANKS NOW HAVE THE URGE TO PRINT MONEY .... DESPITE THE FACT THAT THERE IS ZERO VELOCITY OF MONEY IN THE SYSTEM...
THE MASSIVE MONEY PRINTING IS BALLOONING THE STOCK MARKET...AND PAPER ASSETS... AS SOME OF THE BANK AND CORPORATE HOARD "LEAKS" OUT INTO THE STOCK MARKET...AND OUT OF THE BOND MARKET....
PRESENTLY ...THE VELOCITY OF MONEY IS ZERO...BUT THE QUANTITY OF MONEY IS INFINITE... AND IT IS THAT PROMISE OF INFINITE SUPPLY THAT HAS THE GOLD BUGS WORRIED...
