IMF Announcement and Inflation Concerns will impact Silver and Gold

IMF DROPS A BOMBSHELL ON THE US – The International Monetary Fund dropped a bombshell, that went largely unnoticed. They have now set a date, 2016, when the economy of China will officially pass that of the US. This is only five years from now! Many questions will need to be answered, regarding how this will effect the US dollar and the US Treasuries, when they no longer enjoy the privileges of being Number One.

INFLATION CONCERNS TROUBLE WALL ST – in a day of light trading, the stock market declined on concerns that earnings reports were beginning to become affected by rising commodity prices. Kimberly-Clark for one, reduced their full-year outlook due to the costs of pulp and other goods rising by almost twice as much.

VictoryIndependence Inflation

Crushthestreet.com and YT victoryindependence summarize the QE / Inflation basics in the following video:

Gold Buying in China Jumps as Inflation Flares, Boosting Demand, UBS Says - Bloomberg

Bloomberg - Kim Kyoungwha, Mar. 2, 2011

Gold purchases in China, the world’s largest producer, climbed to 200 metric tons in the first two months of 2011 as faster inflation boosted consumer demand, according to UBS AG, which said the price may gain to $1,500.

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Proof of a V-Shaped Recovery Today.

All the propaganda by the Fed and Keynesian pundits about the beginnings of their lauded V-Shaped recovery came to mind today. First, I watched the latest NIA video release covering the bond prices and rise in goods that we all know is happening. Thank God that a box of cereal is about the same price. Ok, so now it's the size of a Cracker Jack box, but the price is still the same. Not that I question Ben Bernanke -- after all acoording to the Fed, currency debasement and inflation has absolutely nothing to do with the falling dollar and rising prices for all US consumers. (The very same consumers that used to make up 70% of the economy.) Anyway, my wife told me that retailers won't raise prices until January, or they risk holiday sales numbers. Hmmmm.... currently she's the bread winner of the family so I won't argue (too much). Here is the NIA video:

I guess what many people want to know is will there really be a V-Shaped recovery? esp. after the latest manipulation. Why yes, I have no clue of the Fed can do tricks with worthless linen, but a small V-shaped recovery came today for those of us Americans who hold real money:

What if the Bernanke has it right? What then for Gold?

Gold and 11 Zeroes, Part Two  (Goldseek.com)

Adrian Ash from Bullion Vault asks: What if the Central Banks actually have it right and money starts to gain in value?

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Back in 2002, three years after Japanese consumer prices began falling and one year after the Bank of Japan first embarked on quantitative easing to try and reverse that trend, Tokyo's Economic & Industrial Policy Bureau organized a survey of consumer experiences.

All told, 80% of respondents in 2002 said they felt some level of deflation in prices. A little over 25% felt deflation "very strongly", in fact. And only 1% said there had there been no deflation in their experience.

Yet gold prices in both the Tocom futures market and in Tokyo's Ginza shopping district had risen 37% regardless. That gave early buyers of the ultimate (and apparently one-trick) "inflation hedge" a better than 40% gain in real terms.