The story referenced in the title being whether or not global policy makers can cook up an inflationary up phase in the global economy. I had used the term ‘i2k12′ early last year referring to the prospects for what might ultimately be an inflationary 2012. Well, they came with the QE at year-end and now the theme shifts forward to the prospects for i2k13.
A subscriber forwarded to me an audio of Don Coxe talking about the changes coming out of Global Policy Central in “Basel Greenlights Banks Big Time” and it turned out to be a good starter for a post in which I would like to try to delineate some things.
You may have heard me belly ache in the past about the raving inflation bulls who lump gold and gold stocks in with the entire inflation trade? Gold is copper is oil is hogs?
No, gold is counter cyclical in its relative strength to these other things. Ironically, when gold is being out performed by silver and a whole host of commodities in an inflationary phase, it can rise (sometimes handsomely) in nominal terms but its producers will suffer. Continue reading "CCI-Gold Ratio Will Tell the Story"