Sunday, January 15, 2006

Inflation vs Gold at a 25 year high

Adam Hamilton has a nice bit of information about "real gold."

I like his observation that inflation is government creating too much money, and higher prices follow. To read the papers, or listen to the talking heads, inflation is caused by business and labor.

In reality capitalists and workers are just trying to keep up with the inflation monster created by government printing presses. Of course government wrings its collective hands, saying it has to take more control of the economy to squash the monster.

My one reservation is that in using government inflation figures, Hamilton is basing his conclusions on a lie. Money growth is the true measure of inflation. The damage he sites has actually been much worse.

But I have detoured from Hamilton's point.

This essay is provided by the 321 Gold site.

This report is well worth the read, not for an insight on gold; but like a bucket of the cold water in the face - it does have the ability to wake us up.

Adam Hamilton - Real Gold Highs?


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