Its Gold Jerry, Gold!
There's an interesting debate today on Gold at Real Money. Some people actually think that Gold reflects future expectations for inflation (sarcasm strictly intentional).
For those keeping track, I mentioned the GLD holders on Power lunch on March 30, 2005, (CNBC).
All this deficit spending may lead to higher rates, more inflation, and private capital crowded out, if left unchecked.
Not too worry too much: Max Sawicky figures out how to pay for everything, from Katrina to Iraq to all other deficit spending.
One last thought: As we noted in the past (here and here), the lack of increased supply in the 30 year Bond has sent managers after the 10 year. That, in my opinion, is a reason for part of the cinundrum.
When the 30 Year returns in February -- we can expect to see that limited supply issue disappear -- and that means rates ticking higher.
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When the dollar collapses, and interest rates are at 25%, and stock markets collapse, and I buy all the houses in my neighborhood for a pound of gold, we'll see who is laughing!
In all seriousness, the best book about the history of gold and money is called "The Power of Gold: The History of an Obsession", by Peter Bernstein.
It is a great read -- the history of gold is deeply intertwined with the history of money. The emergence of the gold standard is covered as is its demise. Awesome book.
PS: With all your blogging, do you have time to get real work done?
Posted by: Mr. Dude | Sep 16, 2005 1:07:30 PM
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