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Message:: [QUOTE="Bluesboy65, post: 1099092, member: 23329"]Thanks for posting a link to the article.  As you may recall, the first rate increase that China took a few weeks ago was followed by a pullback in gold (as one would expect under a non-inflationary environment).  I guess the tide of public sentiment is turning a bit as people feel that inflation is one step ahead of their central bank, here's a quote from the article: "There's the impression that the Asian central banks are chasing inflation instead of being ahead of it." This is exactly my take on where our central bank is.  Bernanke is not inept he just has to choose between the lesser of two evils.  Tighten fiscal policy and crush our fragile recovery OR perpetuate loose fiscal policy and find some way to deal with the consequences later.  For every 1% increase in the bond yield there is something like an additional $140 billion in interest owed on the debt.  We may not want to deal with our debt problem but the bond market may force the issue. By the way Bernanke testifies before the House tomorrow. Should be interesting but my prediction is he will not budge on rates, CPI or his QE programs.  Bad for our future, good for precious metals.[/QUOTE]