jim willie says the price action in gold (and oil and copper) signals inflation ahead, not deflation:

GOLD SHOWS NO SIGNS OF SO-CALLED DEFLATION

If deflation (whatever they believe that means) is gaining an upper hand, then somebody should tell the gold price. It is oblivious to any such vapid threat. Being ultimately a monetary instrument, gold continues to build its energy field for the next rise. Notice the rising moving averages and the rising trend on the build-up toward the breakout level of 1000. To be sure, the gold market is reluctant to advance with power. It is being held back by the illicit gold futures shorting campaign that violates every regulatory statute in the book, beginning with the 90% collateral requirement. Heck, we all could bring down the price of a cup of coffee to a mere dime if we shorted the coffee contract into oblivion without benefit of supply, provided the central bankers kept huge inventories to work past the midnight hours in their nether chambers, where they devise new Politburo poppycock plans. Notice not so much the Head & Shoulders reversal pattern shown in past articles, but the upward energy embodied in the chart.

Numerous factors conspire to push the gold price above the 1000 level. Most investment camps seem to be waiting for an ‘All Clear’ sign, to lessen their perceived risk. One might have thought it would have been the mid-March monetization message by the USFed. However, a mountain of new illicit non-collateralized gold futures contract sales at the same time prevented such a power push. The vile Power Elite was prepared and responded. Many other messages are certain to fuel the ultimate power push. The foreign sovereign wealth funds are diverting some of their new trade surplus funds into gold, even announcing it. In fact, the foreign creditors have halted the great majority of USTreasury Bond purchase, even the USAgency Mortgage Bond purchase in a virtual global strike. That new development has escaped the intrepid lapdog US press. They have reported the sharp rise in ‘Indirect Bids’ for USTreasury auctions in back pages where few read. Translation: foreign central banks are the only buyers anymore, and probably they act on behalf of the USDept Treasury. Thus, the USGovt is the primary buyer of new USGovt debt, monetization. They key point to take home and run with is that the USGovt has begun to disguise its vast monetization, so as not to annoy the already angry Chinese creditors. Maybe the USGovt can pledge a couple US cities as collateral, and toss in a couple national parks and some golf courses.

http://news.goldseek.com/GoldenJackass/1246500000.php