Gold and Inflation

Paul van Eeden was on BNN today, (click on the post title for the video link) I always enjoy his macro outlook on the economy.

If you agree with his numbers for monetary inflation then the central bankers are in a very tough position. Curbing inflation and stimulating an economy are impossible to do as the interest rate decisions for both problems are the opposite of each other.

That should mean interest rates remain flat as the bankers hope that inflation will ease as economies cool.

Should being the operative word until the central bankers deem one problem worse than the other, or they have to appease their political masters.

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