| Because the Fed continues to pour money in to the economy, it’s difficult to say for certain when Gold will make a dramatic move. The historical record indicates that a surge in money growth has its peak effect on economic activity about 9 to 18 months later. Add another 12 months or so for the peak effect on consumer price inflation.
In other words, the Federal Reserve is always driving with a loose steering wheel. Most of the experience behind those numbers is with relatively tame ups and downs in the business cycle – not the kind of financial violence we’ve been seeing over the last several years – which adds another variable...............................................Full Article: Source |