The US dollar plunged once again today as the currency continues to be battered by increasingly substantial rumours that the Federal Reserve will announce, within the next three weeks, plans to buy $1 trillion of government debt in the form of “quantitative easing”.
“Some analysts are already concerned about the potential inflation consequences of the Fed’s previous QE measures. To the extent that QE2 would exacerbate those concerns, it could raise inflation expectations.” Thornton writes.
It is clear that some within the structure of the Fed are attempting to distance themselves from, or are even attempting to prevent the madness that they know is about to ensue under the policies of their superiors.
Of course, this is coupled with another record breaking day for gold, with Comex gold prices hitting another record high of $1,388.10 in December futures.
“Gold’s climb is not showing any signs of slowing: $1400 is now being eyed as a short-term target, which seems easily achievable as long as the dollar continues to fall across the board,” Edel Tully, precious metals strategist at UBS in London, told the Financial Times.
The US mint is now selling American Buffalo coins at a whopping $1,610, with American Eagle proof coins at $1,585 and American Eagle uncirculated coins completely unavailable due to the overwhelming demand:
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