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<p>I picked up some of this today (not from WalMart):</p>
<p>Premium</a> Wild-Caught Fish from Bar Harbor Foods of Maine</p>
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<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>
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<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>