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<p>[QUOTE=&quot;InfleXion, post: 1281590, member: 29012&quot;]No it wasn&#039;t you who I quoted. I was responding to numerous posts so I could have been more clear. As to whether we have inflation or deflation I agree that is mostly in the hands of the Fed and whether they decide to continue money creation or not. They have been increasing the M2 supply since August so my guess is that they are opting for inflation whether or not it&#039;s labelled QE or anything at all. </p><p><br /></p><p>I think cash is a good short term play until the European situation comes to roost here in the US. The Fed has already been sending US tax payer dollars to the IMF to bail out Europe so things aren&#039;t looking good over there, and US banks own a lot of that debt. If defaults start occurring then it will either be money printing or hiking the debt ceiling, or both to keep the TBTF banks on the up and up (and they&#039;re already on downgrade watch by Fitch) which are both good for gold as well as potentially for stocks. I am looking for blood in the streets as well but would consider that more like DOW @ 8000 than what we&#039;re seeing lately with the indecisive seesaw action. Anything above 10,500 is bullish for the DOW since that was the previous recent low.&nbsp; </p><p><br /></p><p>&nbsp; </p><p><br /></p><p>As long as both axises are equidistant for both items being graphed then a directly proportional relationship is intact, which is the case here. I would agree with you if say one item had an axis that went 5, 10, 20, 40 with all the same space between those numbers, where the other item went 5, 10, 15, 20 along the same axis, but this graph is keeping even pace for both items. </p><p><br /></p><p>Ignoring the graph and just plotting the numbers, we get the points of (Gold, Debt) of (300, 6000), (600, 8000), (900, 10000), (1200, 12000), which is an increase of 300 in gold for every 2000 of the debt celing, for a static relationship of +$3 in gold for every +$20 of the debt ceiling over the last 10 years.[/QUOTE]</p><p><br /></p>

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