18 Mar 2009

Commodity Traders Understand Economics 101

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Gold jumped up about $50/oz. because of the Fed’s announcement to buy $300 billion in long-term U.S. government debt.

I’m glad to see the gold traders get it. We are dangerously close to the situation where the Fed creates money out of thin air and then “loans” it directly to the Treasury to finance the $2 trillion deficit. But don’t worry, kids, Bernanke’s on the job.

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