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<p>[QUOTE=&quot;Cloudsweeper99, post: 1084032, member: 3011&quot;]When you think about it, the accumulation of debt for consumption has the initial effect of causing a certain amount of inflation.&nbsp; But the long term effect is deflationary since eventually the debt either has to be serviced, repaid or defaulted.&nbsp; But then you have to add the policy reaction of the Fed which may decide to monetize the debt -- or not.&nbsp; So the ultimate outcome is far from certain.&nbsp; Right now the Fed is trying a partial monetization.&nbsp; Maybe it will be highly inflationary if it is too large -- or deflationary if it is too small -- or maybe it will surprise everyone and work, but probably not.&nbsp; This is new ground being broken.&nbsp; A lot of people have strong opinions, but only time will tell who is correct -- or who is lucky.&nbsp; Somehow all of this will affect silver and gold -- maybe the same way, and maybe not.&nbsp; Maybe up and maybe down.&nbsp; I think that anybody who really thinks they know how all of this will end just doesn&#039;t understand how uncertain the situation is.&nbsp; And just so nobody reads anything into this, this comment is not directed at anyone.&nbsp; It&#039;s just that fatima&#039;s comment reminded me of this because there is a strong possibility that silver and gold will react differently.[/QUOTE]</p><p><br /></p>

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