Bejing installed its first vending machine that sells gold. The machine dispenses up to $150,000 in bullion bars. China plans to install many more such machines.
Europe may have to print more money as it bails out the PIIGS, and this would be inflationary. The US may have to accept inflation as part of renewed economic growth. Both sources of inflation would increase the price of gold.
Now doubt, China is aware of these upward pressures on the price of gold.
Now doubt, China is aware of these upward pressures on the price of gold.
2 comments:
With the expectation of a more inflationary Euro, wouldn't this improve the US's capital account, and have a deleterious effect on the current account? If true, wouldn't this increase US inflation as well?
Irrespective of the economic effects, wouldn't Euro zone inflation negatively impact forward earnings of US companies with significant foreign operation, thus substantiating the idea of a double dip?
Yes, inflation could become a global situation.
Surprisingly enough, a small amount of inflation may be required to help us out of the US economic doldruns. Businessmen need to be able to raise their prices to consumers.
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