Wednesday, March 18, 2009

 

Commodity Traders Understand Economics 101

Gold jumped up about $50/oz. because of the Fed's announcement to buy $300 billion in long-term U.S. government debt.


I'm glad to see the gold traders get it. We are dangerously close to the situation where the Fed creates money out of thin air and then "loans" it directly to the Treasury to finance the $2 trillion deficit. But don't worry, kids, Bernanke's on the job.

# posted by Bob Murphy @ 3:45 PM


Comments:
The Blackadder Says:

I'm glad I got my order locked in.
# posted by Anonymous Anonymous : March 18, 2009 at 8:59 PM
 
Whoops... The chart must update automatically, which I didn't realize when I pasted it. Anyway, the original chart I pasted in showed gold spiking $50/oz. very quickly.
# posted by Blogger Bob Murphy : March 19, 2009 at 9:40 AM
 
And millions of individuals using the same get rich quick software press a green button at around the same time to buy silver & platnium as well as gold? Or is it just one big institutional buyer leading a smaller pack? The three metals price charts side by side really leap out at you.
# posted by Anonymous Anonymous : March 19, 2009 at 12:13 PM
 
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