David Engstrom writes:
Like a tsunami heading West to East, more gold is headed to Asia. So many reports on China’s secret gold purchases are surfacing that it’s just not a secret anymore. Don’t be surprised, one day, if you hear China’s gold reserves have tripled. It has been suggested that if news gets out of China’s massive gold buying, worldwide gold demand could spread like a contagion and send gold prices to $2500 an ounce. We see evidence now, the contagion has begun. Japan has joined the effort to accumulate gold in a big way.
In case you haven’t heard, Japan is printing money like it’s free – dah! Isn’t all printed money free? Last year, in an attempt to charge their deflating economy, the Bank of Japan embarked on a money printing spree that could see the equivalent of $1.4 trillion printed by the end of 2014. The target is2% inflation, something not seen in Japan for 22 years.
This effort has some deeply concerned. Pension funds, who revel in deflation are concerned that inflation will rot away the purchasing power of money saved. In a deflating economy, cash is king as purchasing power increases. Consider for yourself, the value of your own retirement savings if 2% deflation persisted over the next 10 years. Then compare that to just 2% inflation and you see how your savings and retirement could lose 40% of its purchasing power within a decade. ...