Re: inflation. The actual inflation is indeed higher than the headline CPI figure reported by the government. The Bureau of Labor Statistics has been doctoring this number to artifically suppress inflation numbers since Clinton by changing the the CPI’s calculation methodlogy.
Re: Gold price increase. In addition to the Yen carry trade, I suspsect the accelerating increase in gold price this year also has to do with the carry trade of gold itself. For years, traders could borrow gold from central bank for next to nothing, sell them in the market then reinvest the money for a quick buck. As gold prices rebound, there ought to be a lot of short covering.
Re: USD decline and why now. Not now; it’s been happending for years. Take a look at the chart of the USD and you’ll see that it’s been losing value for decades. It’s just that most of us don’t remember things more than a few years ago that you think it’s just happening now. It’s simply a resumption of a long term trend, nothing special about it.
Re: money supply. Turn off the spigot while we’re all enjoying a nice long hot shower ? Who’s got the guts to do that ? Greenspan’s the one that gave us more. How about Ben ?
