Comments on: Significant Stats, Chinese Navy http://www.economyguy.com/significant-stats-chinese-navy/ Economic News For Everybody....by Tom Harvey and Cyrus Uible Thu, 09 Feb 2012 03:08:35 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Tom Harvey http://www.economyguy.com/significant-stats-chinese-navy/comment-page-1/#comment-669 Tom Harvey Sun, 28 Dec 2008 16:41:15 +0000 http://www.economyguy.com/significant-stats-chinese-navy/#comment-669 Hi David, Good question. Your thoughts on the effects of deflation are absolutely correct. The difference with what's going on right now is that we are throwing money at problem, and that will cause inflation in the future. Gold feeds on inflation - as you so rightly inferred. Another thing working in the market today is speculation, and it could be pushing gold more than a normal market would play. Tom Hi David,

Good question. Your thoughts on the effects of deflation are absolutely correct. The difference with what’s going on right now is that we are throwing money at problem, and that will cause inflation in the future. Gold feeds on inflation – as you so rightly inferred.

Another thing working in the market today is speculation, and it could be pushing gold more than a normal market would play.

Tom

]]> By: David http://www.economyguy.com/significant-stats-chinese-navy/comment-page-1/#comment-668 David Sat, 27 Dec 2008 22:19:58 +0000 http://www.economyguy.com/significant-stats-chinese-navy/#comment-668 This won't be the last time the Chinese Navy operates outside their coastal waters. In fact we should expect this to be a trend. We aren't the lone superpower any more. This may even stabilize the global oil supply as the gulf region is secured not just be the US but also by China. I have a question. Why is it that global deflation increases the USD price of gold. On the surface, it seems that there are fewer dollars chasing goods which leads to lower prices. Why is it that gold has increased in price or at least been more resistant to the asset price deflation we have seen elsewhere? This won’t be the last time the Chinese Navy operates outside their coastal waters. In fact we should expect this to be a trend. We aren’t the lone superpower any more. This may even stabilize the global oil supply as the gulf region is secured not just be the US but also by China.

I have a question. Why is it that global deflation increases the USD price of gold. On the surface, it seems that there are fewer dollars chasing goods which leads to lower prices. Why is it that gold has increased in price or at least been more resistant to the asset price deflation we have seen elsewhere?

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