Last night my wife and I attended the NZSA meeting in Hamilton of the Waikato branch.
Professor Neil Quigley gave a talk about the economy and the many uncertains surrounding it.He stressd that the Reserve Banks number one priorty was to keep the economy stable.
Mostly we were not impressed. To a question about printing money he assured us that Quantative Easing is not printing money . Convinced no-one. A rose by any other name......
Yesterday the gold price ran up from 1940 to 1985 then down to 1915. At the moment it is back up to 1957. I asked the question regarding yesterdays up and down. To me it looks like the worlds central banks [Fed] to sell down gold as it was rising too fast and would harm the stabilty of the dollar and western econimies. No he said they never do that. Great reply. This morning I read on KITCO that the reserve banks are more deeply in curency maniplication than at any other time. So in short Gold will go up but not so fast as to do harm to currency.
But it seems a rising gold price will do no harm to our economy only if we do not talk about it.