techstepgenr8tion wrote:
Q. Another possibility is that gold could be repegged (a figure I see floating around online right now - whether it's realistic or moonboy for this scenario - $20K per oz). Do you guys have any thoughts on what makes sense based on the metrics you're seeing?
Here's a funny thing about gold; most of what is dug up is then reburied in bank vaults, where it does nothing useful! If this was any other substance, it would be called a glut, and prices would plummet, so forgive me if I stay well clear of it; fluctuations are based on emotional responses, and thus, for me at least, incomprehensible and unpredictable.
As for financial easing, this amounts, in real terms, to a deflation of the value in your bank accounts, so as to make it look as if governments know what they are doing. Want to improve exports? Sure, issue more money so that goods appear cheaper in foreign markets, and lets ignore the fact that the price paid may not change numerically, but falls in value with each sale, but hey, we keep up the production numbers, right?.
So what happens in those foreign markets? When reduced sales of their home products become painful, no problem; they issue more of their kind of money, and so the can gets kicked down the road until it becomes full circle...
I remember one famous financial expert (though I don't recal his name) expressing the view that it doesn't work in theory, but does in practise. Well, no, it doesn't in practise either; it's just playing with numbers for short term returns.