Richard Russell tells King World News:
The world is caught betwixt and between. The betwixt is inflation and the between is deflation. By now Janet Yellen must know she is fighting the forces of deflation, and it's a question of how she will address this problem. My guess is that she will address it with additional QE.
The battle against deflation is very serious and the Fed knows that once deflation gains the upper hand, we are headed for a serious recession. While inflation can be halted easily with higher interest rates, deflation is another story; it tends to take on a life of its own. For holders of gold, ironically, deflation is a convoluted form of good news, since it will require massive infusions of liquidity in the fight against inflation.
My stance continues to be “gold, gold and more gold,” with just enough cash to handle the needs of the day. This may sound boring. But in this case, boring equates to peace of mind. ...