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<p>[QUOTE="InfleXion, post: 1225827, member: 29012"]Debasement of the dollar is more than just quantitative easing. Interest rates used to be a lot higher years before they hit zero percent in 2008 which you've cited as the point of focus. Lowering of interest rates accomplishes the same thing as creating new money. When interest rates could go no lower is when the easing started. Also I would not look for precious metals to instantly move in response to dollar policy. IMO it has a delayed effect as the new money enters the market which is a huge variable. These reasons are why I prefer to look at trends in terms of decades instead of shorter time periods. I should clarify I'm not trying to say the metal charts are an exact inverse of the USD, just that the directions themselves are inverse and the trendlines are what I am looking at here. If we can't agree at this point we probably never will, but the one thing I would point to that I believe is not disputable are the similarities between gold and silver. If you believe that gold tracks the dollar's debasement, then so does silver.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1225827, member: 29012"]Debasement of the dollar is more than just quantitative easing. Interest rates used to be a lot higher years before they hit zero percent in 2008 which you've cited as the point of focus. Lowering of interest rates accomplishes the same thing as creating new money. When interest rates could go no lower is when the easing started. Also I would not look for precious metals to instantly move in response to dollar policy. IMO it has a delayed effect as the new money enters the market which is a huge variable. These reasons are why I prefer to look at trends in terms of decades instead of shorter time periods. I should clarify I'm not trying to say the metal charts are an exact inverse of the USD, just that the directions themselves are inverse and the trendlines are what I am looking at here. If we can't agree at this point we probably never will, but the one thing I would point to that I believe is not disputable are the similarities between gold and silver. If you believe that gold tracks the dollar's debasement, then so does silver.[/QUOTE]
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