"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

Trader Dan's free work will soon be available at www.traderdan.biz

Thursday, February 24, 2011

Inflation raging in India

Courtesy of an industrious reader David, who scours the globe gathering stories of interest, comes this story reinforcing the challenges being faced by nearly all of the nations across Asia due to the rising cost of food, not to mention overall inflation pressures in general.

This is why the gold and silver markets will find buying on dips in price.

Asian demand will keep a solid floor of support beneath these markets that we will be able to discern from watching the price charts. Those in the West may throw the metals away dismissing inflation concerns, but those concerns are very much alive and unfortunatey all too well in Asia.

Thousands protest against high food prices in Delhi
You can read the entire story here:
Thousands of people have gathered in the Indian capital, Delhi, to take part in a rally to protest against rising food prices and unemployment.


  1. What about this though. If inflation is rising and food prices are becoming a protesting issue and the stabilizing of the country depends on it, will not the countries raise their interest rates in effort to raise the value of their currency to offset the the increase the cost of food. If this comes about then will not the investors in gold leave to take up the growth from currency. Thus leaving the safe haven for growth....coswil

  2. coswil - as long as REAL, not nominal, rates are negative, gold will thrive. Generally speaking, CEntral Bankers are behind the inflation curve, raising rates at a rate that lags the rate of inflation. Not until they get rates to the point where the REAL yield is positive (exceeds the rate of inflation) will gold be affected.


Note: Only a member of this blog may post a comment.