Wednesday, February 29, 2012
Hey gold bugs...what happened???
For the past week you had all these gold bugs and other "very smart people" telling us how the world is being "flooded with money" by the central banks and that the ECB's coming LTRO (II) would be another example that. Then the ECB does a larger than expected, 529 bln euro ($700 bln) and what happens? Gold tanks. Great call, gold bugs. Great call.
MMT had it right, once again! Central bank monetary operations are NOT inflationary.
The Fed cannot print money, even if it wanted to. Only the Federal Government can and it's currently "un-printing" money, as are nearly ALL governments of the industrialized nations of the world.
Good call, gold bugs...good call!