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<p>[QUOTE=&quot;InfleXion, post: 1380609, member: 29012&quot;]If I learned anything last year it is that this market does not give a rip about fundamentals. They trade a year&#039;s worth of silver mining supply in paper contracts every single day, and that is what drives price action until such time as the physical market can no longer function without taking precedence. So I do think we will see one more hit before the price really gets going in June when the Pan Asian Gold Exchange opens up. Rising oil prices would definitely accelerate this. </p><p><br /></p><p>So I completely agree with you that 0% interest rates will be inflationary, and that higher prices are just a matter of time. I don&#039;t think that the Fed wants inflation, I think that they have no alternative. Assuming they were to implement the Volcker Rule and pump interest rates up to 20% then we would be underwater in no time. It&#039;s just not a possibility with this much debt, and they are mitigating it as much as possible the only way they can. </p><p><br /></p><p>The reason the economy is showing signs of growth is because every bank in the world is pumping liquidity into the global financial system. Japan did an intervention last week, and PBOC lowered interest rates too. The Eurozone is still talking about doing a $2 trillion LTRO as well. The Fed won&#039;t have to do any more QE if they implement negative yield bonds either since people will be paying to own them at that point and that will be added to the money supply. If they print their own money to buy these bonds, there&#039;s just that much more inflation.[/QUOTE]</p><p><br /></p>

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