<p>Well, the S&P Sept futures are down about 30 points and the Nasdaq futures are down about 50 as I write this…Sometimes…by the ny opening the futures prices are vastly different. Right now the futures are down less than 3%. </p>
<p>And I see free markets at work as ECB is expected to buy Italian bonds and other country bonds.</p>
<p>I was with my wife at WalMart and she was looking in the frozen fish section. They had beautifully packaged perch, cod, haddock, tilapia, shia (no clue what that is), flounder and salmon. We were curious about where the fish was from because the price was very good.</p>
<p>1169 and dropping.<br>
It was at 1161 earlier.</p>
<p>Can someone explain this to me? Gold is supposed to be an inflation hedge, but there is no inflation according to Bernake even though we are printing money like crazy. Gold trades inversely with the dollar and the dollar is supposed to get stronger. Yet gold is going through the roof. Bubble or genius?</p>
<p>Asia is generating a deflationary effect while Central Bankers are attempting to create some inflation as deflation is very bad for those in debt (that would be us). The current bump in gold prices appears to be coming from Central Banks looking to hedge their exposure to the US dollar. The Euro has problems, China has problems, Japan regularly devalues, etc. Gold doesn’t have that problem but there isn’t enough of it to be a reserve currency. There are stable countries with stable currencies but their economies aren’t big enough to act as a reserve currency.</p>
<p>It’s at 1173. I’m out for some quick pocket change. I suspect 1161 will hold at least until the big boys and girls in nyc get to the office in the a.m.</p>
<p>interactive brokers has extremely low commissions but their user interface is not very good.</p>
<p>gold and central bankers seems like an logical explanation.</p>