Once again I find a little bit of peace in the yearly chart which tunes out the hysterical day to day noise. There are horns blowing, leaders yelling 'CHARGE!' while others whimper 'retreat'. The vast and pliable herd whipsaws this way (inflation hysterics of just this past summer) and that (deflation hysterics currently in progress) and sometimes we forget how long certain things take to play out. Time... what a concept.In our little corner we will stick to the 'gold may decline in a deflation impulse but will do so much less than stuff that is positively correlated to economies and human hopes for prosperity' line.
Yes, I know there is a typo on the chart and I am not pleased about it but I am also too lazy to go do it again.
Edit (3:19) Then there is this bit of genius regarding some more funny munny the Fed is coughing up, this time committing to sop up all those bad mortgages and while they're at it here's a couple hundred billion for tapped out consumers to get off the hook too. Meanwhile, the gold chart plods along. It's got time.
Some, however, are worried the mounting costs of the measures, which have the potential to reach several trillion dollars, could eventually fuel a troubling inflation.
"It may mean (a) longer-run issue with inflation and inflation concerns," said John Silvia, chief economist at Wachovia Securities in Charlotte, North Carolina. "It may be too much of a good thing is a bad thing. We may be overpaying for bad assets."
Policy-makers, however, have signaled a willingness to do whatever it takes to try to tamp down the risk of a severe recession.
