``Rising gold is not a signal of inflation, nor “deflation” — it is undeniable proof of the dollar’s demise and devaluation. Period. More telling than monetary “proof” of either inflation or deflation is the fact that we are immersed in a bona-fide banking panic — like grandpa used to enjoy. Such panics may or may not cause true monetary deflation; but it is certain that there is no deflation in terms of dollars today, in this panic. If there was, the Federal Reserve and the powers-that-be would have a lot more trouble printing dollars in response to the crisis. The supply of dollars would be constricted; hence “money would be more scarce” (and its buying power would go up, the end result of this deflation).''

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