Thursday, October 13, 2011

McAlvany Weekly Commentary

Does Gold Rise or Fall in a Deflation?

About This Week’s Show:
-Gold is money and therefore increases it’s buying power during a deflation (contrary to popular belief)
-Question: How can the economy ever recover if the Fed stops injecting it with new stimulus? Answer: If left to the natural business cycle, the PRICE of all things adjusts to a lower equilibrium which prompts spending once again
-Why does the Fed want us to fear inflation and to “fight it at all costs” when some of the most productive era’s in history have been during deflationary periods?

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