-- Posted Friday, 8 June 2007 | Digg This Article

Solid red line is the G/S Ratio. Dotted brown line is the 30-year bond yield, dotted green is the US dollar. As illustrated in the 2nd chart, gold is miles ahead of where the FF rate should be. As this second chart does not yet reflect the recent upward swing in the 10-year bond rate, the historic evidence clearly points that higher rates will be forthcoming. The Fed can only manage the FF Rate de jure, other bond rates are established by the market - although the Fed CAN monetize this debt by buying it with more newly created fiat money which we suspect they have been doing right along. If not already apparent to most, higher prices for the things we need and buy will be the evidence of reckless money creation of unretired debt. Power to the Bankers! Got Gold?

-- Posted Friday, 8 June 2007 | Digg This Article

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