On Oct 24, 2010, at 4:54 AM, Julio Huato wrote:
> Am I missing something here? That strengthens the case for deflation.
> If the price of gold relative to the price of other goods is high
> *and* gold is the true medium of exchange, then there's deflation!
Julio, you're misreading the free-market mindset! If the price is gold this means either or both that the CPI is wrong (because the market is always smarter than the gov) or that inflation is imminent (because the market can tell the future).
Doug