The Fed is determined to fight deflation

Wow... after all these trees getting killing and reports are emerging out as deflation is our economic issue now.

Now does this make any sense to you? If the government is pumping TRILLIONS of dollars into the market and expects the foreigners to sop up additional American debt. As I mentioned before, China is dumping over 600 Billion into their own infrastructure and President Obama is trumping China with 700 Billion into their own infrastructure.

My bet is on GOLD. As I tell my buddies that if the government gets tight about the money supply (which they wont) I am totally screwed because it will bring the price of gold down. On top of this, it actually may bring deflation back into the game because no credit would revolve around the market, and our debts would cost more so the government would not want that.

At least the bright side of a devalued currency is that it would not provide as much incentive to ship our jobs overseas (and I am betting my ass that Obama would push to get our currency devalued).

Here is an interesting video that I stumbled on to...