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<p>[QUOTE=&quot;Cloudsweeper99, post: 1240258, member: 3011&quot;]Gold has all of the characteristics of a sound foreign currency that can be quickly converted to any currency in the world.&nbsp; In that sense it is both a store of value and money.&nbsp; Think of it as money without a country.</p><p><br /></p><p>Regarding the OP, what you are missing is that at the same time the Fed has expanded its balance sheet, there has been a significant contraction of debt through default and repayment in others.&nbsp; Under a fiat currency system, the money is the debt and the debt is the money and it doesn&#039;t matter whether the money comes from the Fed or any commercial bank that can create and destroy money through their own lending actions.&nbsp; So nothing that you posted proves the case either way because it is an incomplete analysis.&nbsp; So we are facing an economic situation where prices are going up partly because of the currency and partly because there are hundreds of millions of new middle class consumers in the world now than a decade ago.&nbsp; This is more of a shift in the demand curve to the right rather than a monetary phenomenon.&nbsp; The difference is subtle but important.[/QUOTE]</p><p><br /></p>

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