On Apr 21, 2011, at 5:56 PM, 123hop at comcast.net wrote:
> Talk of gold going to 5000/oz. And discussion of how this would be the result of inflation.
> But I don't see inflation. I see a deflationary spiral, reflecting the race to the bottom.
> So, if it's not inflation related, it would just be the next bubble, yes?
The whole commodity complex looks to be in a bubble. There's no fundamental reason why oil should be $112 either.
If inflation is such a threat, why are 10-year TIPS priced for an inflation rate of 2.6%?