Check out this chart that shows the price of gold relative to U.S. Treasury and U.S. agency securities held by the Federal Reserve and other central banks [- a VERY interesting correlation to say the least]. Words: 260
So says Robert Wenzel (www.economicpolicyjournal.com) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Wenzel goes on to say:
As Ed Yardeni puts it:
There is an interesting close correlation between the price of gold and the sum of US Treasuries and Agencies held by the Fed and foreign central banks. This shows that the price goes up as banks monetize the swelling debt of the US government.
|Click to enlarge.|
I’ll say it’s an interesting correlation.
Bernanke and central banker cronies print money to buy up Treasury securities, creating inflation and driving up the price of gold!
- Update: Why $300+ Silver is a Realistic Future Peak Price http://www.munknee.com/2011/07/with-gold-at-10000-silver-could-reach-714/
- Update: These 90 Analysts Believe Gold Will Go to $5,000/ozt. – or More! http://www.munknee.com/2011/06/update-these-90-analysts-believe-gold-will-go-to-5000ozt-or-more/
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above