Fed is going to print $40 Billion/month until the economy takes off.
The recent spike in gold ($1734 this morning) has anticipated the first $480 Billion in QE3…. at least according to my equation.
|Monetary Base (in millions)||2,630,010||3,110,010|
|Estimated Gold Price/ Ounce||$ 1,731.61|
But if this goes on for 2 years then the gold price should be….
|Monetary Base (in millions)||2,630,010||3,590,010|
|Estimated Gold Price/ Ounce||$2,000.41|
Get ready for $4 gas, $1000 airfare, and $5,000 MRIs. Oh, and you can forget about a cost of living adjustment because they take that inflation OUT of the calculation.