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.
| 9/5/12 | +1 Year | |
| Monetary Base (in millions) | 2,630,010 | 3,110,010 |
| S&P 500 | 1,450 | 1,450 |
| Estimated Gold Price/ Ounce | $ 1,731.61 |
But if this goes on for 2 years then the gold price should be….
| 9/5/12 | +2 Year | |
| Monetary Base (in millions) | 2,630,010 | 3,590,010 |
| S&P 500 | 1,450 | 1,450 |
| 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.
The re-election of Obama is now a near certainty. The beauty of it is now democrats will get to own the great inflation. I’m sure they’ll shift blame onto global warming, evil speculators, Arabs, the Chinese, and greedy rich people.
