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<p>[QUOTE=&quot;Rono, post: 1357536, member: 6492&quot;]<b>two more years of QE to the nth</b></p><p><br /></p><p>Howdy,</p><p><br /></p><p>Their announcement about keeping rates at zero for another couple of years implies QE 2.5, 3, 4, 5, 6 . . . </p><p><br /></p><p>And as mentioned, the opportunity cost of owning gold is zero because interest rates are zero.&nbsp;&nbsp; </p><p><br /></p><p>What that also means regarding interest rates, is that the supply of credit will remain severely diminished.&nbsp; &nbsp;&nbsp; What is happening is that with the Feds holding interest rates artificially low - lower than the street rate, you wind up with restricted supply.&nbsp; Classic Econ 101 supply/demand curves in a fixed price market - supply disappears.&nbsp; Remember gas price controls under Nixon?&nbsp; All of a sudden everyone is out of gas.&nbsp;&nbsp; duh.&nbsp; How about bullion a couple of years back with the paper price diverged so greatly from the street price that supply disappeared and/or premiums skyrockteted?&nbsp; Same/same.&nbsp; Right now, 30 year fixed mortgages are being touted at 3.8% or thereabouts.&nbsp; Yeah, right.&nbsp; Try to actually find one.&nbsp; Unless you have a huge downpayment and an 800+ credit score, &quot;sorry, we&#039;re all out of money&quot;.&nbsp; &nbsp;&nbsp; Find me a banker that wants to loan you 6 figures at 3.8% for 30 years . . . yeah, right.&nbsp;&nbsp; &quot;Are you crazy.&nbsp; Now, if we write it for 5.85-6%, well maybe I can find some money to loan you.&quot;</p><p><br /></p><p>So, with the announcement, you know that pm&#039;s have another couple of years at the very least, inflation is coming and you can hear the bloody hoofbeats, and credit will remain tighter than . . . .&nbsp; =====&gt;&gt;&gt;&gt;&gt; own some gold, guard against inflation, and if you can borrow money - do so.</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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