Zeev's Turnips Patch-No Politics (ZEEV)

[From the East Bay]

Turk was the guy Norman trashed today.

In part:

This brings me again to gold, where I feel the need -- again -- to debunk some of the bullish arguments I've been reading.
The latest one comes from an editorial in Gold-Eagle.com, a popular pro-gold Web site, where the author states: "...
The U.S. is growing its money supply at an alarming rate just like prior to Y2K..."

As we've just seen, this is total nonsense. The gold bugs would like for it to be true -- they argue that the U.S. is
"debasing" the dollar because it is allowing money supply to grow rapidly -- but it isn't. Yet, despite 13 rate cuts since the beginning of 2001, the Fed has largely been unsuccessful in causing the money supply to grow rapidly -- a goal that it
surely has in mind if it continues to be concerned about deflation.

Not surprising, gold fell last week in reaction to higher stock prices, and perhaps, in reaction to tighter monetary
conditions.

Full text at RealMoney...