Holding Off Deflation

Dow Theory Letters
"...Remember, Bernanke has to do whatever it takes to inflate, and the key gauge will be the price of gold. To put it another way, if Bernanke can't get gold moving higher, we're in trouble. If gold rallies above 800 and continues to climb, we'll know that Bernanke is succeeding in holding off deflation. But if gold begins to slide, if the gold charts start breaking down, then we'll know that deflation is on the verge of winning the game. And I promise you that if gold loses, we'll all lose."(11/02/07)

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