Au *= (1 + 0.023/s);

Gee… I wonder could have caused that step change in the price of gold yesterday…

gold20120914

Could it be that QE3 means dollars are worth less today than they were yesterday?

Graphic from http://www.goldprice.com/.


*Electrical Engineers who write software will understand the title.

3 thoughts on “Au *= (1 + 0.023/s);

  1. Yup, that’s exactly what it means. And, because of a trade deficit, and overseas buyers of our treasuries, we are effectively exporting most of our inflation, while destroying overseas economies. It’s not showing up here in a big way yet (lots of small ways, though) but when it does come home to roost, it’s going to bite something fierce. Likely whoever wins the election in Nov will get it heaped on their desk, even though it’s really been brewing at LEAST since Greenspan was first appointed and laid the groundwork in the late 80s and early 90s.

  2. In the past, foreign countries were known to print U.S. dollars and attempt to insert them into our economy as an act of war.

    Now they needn’t bother. We’re doing it to ourselves.

  3. The metals market is highly manipulated so it’s kind of hard to read the tea leaves. If the bottom falls out of the gold market tomorrow, does that mean that inflation is gone? No….

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