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<p>[QUOTE=&quot;doug444, post: 1651279, member: 38849&quot;]There&#039;s virtually NO connection between the two.&nbsp; This country is bankrupt now, and its economy can grow and grow and grow and it will still be bankrupt.&nbsp; The beginning of hyperinflation derives from a persistent decline in the purchasing power of the dollar, not from the weakness (or strength) of the economy.&nbsp; And PMs, because they are &quot;denominated&quot; in dollars, will react accordingly.&nbsp; Stocks already have; the share that &quot;cost&quot; $22 in 2007, at the trough, might now &quot;cost&quot; $28.&nbsp; Is that 2013 share intrinsically worth 27% more?&nbsp; In the current environment, I don&#039;t think so.</p><p><br /></p><p>PMs have increased well over 27% -- are they intrinsically worth &quot;more&quot; now?&nbsp; No.&nbsp; They just cost more, and sell for more, of your inflated dollars.&nbsp; You hold them to minimize your loss, as compared to holding Federal Reserve Notes and their equivalents like bonds and IRA&#039;s.</p><p><br /></p><p>Chairman Bernanke pointed out yesterday that the $85 billion sequester would cause a drop in the growth of the economy of 0.6% in the next 12 months.&nbsp; What he&#039;s really saying is that a drop of $85 billion <u>injected into the economy</u> causes that lag in growth.&nbsp; </p><p><br /></p><p>There is now little alternative to &quot;QE almost-forever,&quot; not only by the United States, but every other major industrial nation in the world.&nbsp; It will end badly.&nbsp; All that money created out of thin air, that money has no choice but to encourage hyperinflation, regardless of the growth of the economy, regardless of the unemployment rate, regardless of austerity.[/QUOTE]</p><p><br /></p>

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