Gyroscopic Investing

In the short term, we all know gold is sinking and predictions of inflation are inaccurate, as the Krugmanites crow with glee.

So when reality eventually strikes, how will the major economies handle bankruptcy as we finally recognize that our ever-spiraling national debts are unpayable? There are two likely scenarios, the hard bankruptcy approach represented by Argentina's "Hell, no, we ain't payin' no stinkin' debts (not that we have any valid debts to pay anyway!)" or Zimbabwe's soft bankruptcy approach of "Let's recall all of our currency and stamp some extra zeroes at the end of each bill!"

Hold onto your scorned Krugerrands, folks, is what Clint Siegner advises:

http://www.resourceinvestor.com/2015/07 ... -struggles

Don't you realize that money printing, er, I mean "quantitative easing", doesn't cause inflation? How backwards can you be?

Note:

No money velocity. No inflation. You cannot push a string.

ochotona wrote: No money velocity. No inflation. You cannot push a string.

No inflation, but deflation and negative real interest rates could drive gold higher.

ochotona wrote: No money velocity. No inflation. You cannot push a string.

QFT.

It's hard to get a spending spree going when everyone is up to their eyeballs in debt already.

ochotona wrote: No money velocity. No inflation. You cannot push a string.

So is that why Zimbabwe has such a great currency? 

So how's the gold price action lately?