Eventually this will be an inflationary disaster.Gold will most likely go to $1500 within a few years
There is no recession of the U.S. economy soon, according to Kenneth Gerbino, head of Kenneth J. Gerbino & Company.
In his article "There Is No Credit Crisis, No Recession And That Is Why Gold Is Going To $1500" speaking about the money cirlculation in the country, he says, that a recession could only happen if the economy actually has finally petered out and all the mal-investments of credits and bad loans create dislocations that cannot be handled.
Anyway, with all the new money being pumped into the system and with continuing low interest rates this recession has surely been postponed.
"The dollar will continue to go down, as the Fed has decided to save the banks and flood the country with as much money as is needed to handle their crisis.
Gold is going up because this “crisis” handling means inflation is going to come back, possibly at the highest levels we have ever seen in modern times."
"The authorities have no choice but to inflate or have some major institutions go down. Eventually this will be an inflationary disaster. Gold will most likely go to $1500 within a few years. If one takes $850 gold and allows for only a 7% increase a year for 5 years – the price is $1200, " predicts Gerbino.