Thoughts on Gold?

[M Paquette]

Well, I read the article you linked Imoldernu but I have to admit its as clear as mud to me. If what the author says is true Why is the dollar appreciating? why is Europe sliding into deflation? Why is inflation so subdued in the US? Why are commodity prices decreasing? Why aren't interest rates rising?

Ah, not familiar with the wonders of Austrian School Economic Philosophy, eh? It's a philosophy which preaches despair, and demands that we take no action that might interfere with the perfect rational actors participating in it's frictionless marketplace. (Really!)

Everything predicted by the Austrian School is true, and is actually happening, once one compensates for the flawed actors in the economy who fail to act in accordance with the philosophy. Figuring out how to compensate for pesky non-Austrian School actors is the real trick, of course. If only the world were populated with homogenous spherical rational actors...

 

[34rlsa]

Well, I read the article you linked Imoldernu but I have to admit its as clear as mud to me. If what the author says is true Why is the dollar appreciating? why is Europe sliding into deflation? Why is inflation so subdued in the US? Why are commodity prices decreasing? Why aren't interest rates rising?

I read the arcticle as well... I admit... I dont understand either.

From the same web site here is the their 2015 outlook:

The Sum of All Fears

http://http://www.economonitor.com/blog/2015/02/the-sum-of-all-our-fears-the-outlook-for-2015/

There seems to be a measure of truth from the quote below:

"Current policies have encouraged, in the words of IMF President Christine Lagarde, an excess of financial risk taking rather than economic risk taking. The risk of a financial system crisis is now high. But there is no sign that the divergences between financial markets and the real economy is likely to stop. Investment strategist Michael Hartnett illustrated the perverse logic now needed to justify current asset prices: “I’m So Bearish, I’m Bullish… Memo to self: always buy stocks & credit on a negative GDP…”