Posted on February 27, 2014 by Martin Armstrong
QUESTION: Mr. Armstrong, I’m a long time reader and great admirer of your efforts. I recently read an analysts opinion on inflation that I want to share with you.
This analyst maintains that the Fed’s actions to stimulate the economy has done nothing more than fill the pockets of the very bankers that caused the economic troubles in the form of excess reserves sitting at the Fed collecting 0.25%.
Once the economy gathers enough steam to make lending more profitable for the bankers, he thinks the release of those reserves, in excess of 3.5 trillion to date, will create unbridled bidding for goods and services driving prices higher, thus he wants to buy gold!
I don’t, but he does and I’m sure others will follow. What I want to know is how you see those trillions of dollars effecting the economy as it comes online?
to read the answer please click here.
In September 2011 the Gold Bugs index, the HUI stood at 630 as gold prices peaked, since then both have trended lower with the HUI losing about 65% of its value. The bottom has been called a number of times and after such a dramatic decline its difficult not to think that we are there now. However, as we all know the timing of any investment is crucial to its success and that is exactly what we are trying to do here, trying to pick advantageous entry and exit points. If you would like to know which stocks we are buying and selling please join us at ‘Stock Trader’ our premium investment service.
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