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Friday, 06/10/2011 2:53:19 PM

Friday, June 10, 2011 2:53:19 PM

Post# of 67010
Found this,... i think this answers my question...

Now is the time when the Federal Reserve in fact wants inflation because they desperately want to reduce the real value of the U.S. debt and a depreciation of the dollar is one way to do that. So they do want the price of gold go up. However, they don’t want it to go up too quickly. They want an “orderly adjustment,“ that is the exact word that they use – orderly as opposed to disorderly. What does that mean? It means that gold goes up 10 or 15 percent a year, which it has by the way, of course, ten years in a row. If it increases that way they do not mind it, because it cheapens the dollar which is what they want. But what they don’t want is to see it maybe double in six month period or a spike, because that might cause a panic buying of gold, a panic dumping of the dollar, and that can get out of control.

Ronix

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