"I disagree wholeheartedly with anyone that thinks we are due for an inflationary period." As usual it is the gold bugs telling us half the story... and some still wonder why they are always wrong.

I kind of agree with you Clint, but we will get inflation ... just not that soon.

The gold bugs might be right ... eventually... but right now the world is deflating. 40% of global wealth was erased on paper in the past 3 months as global markets tanked. How is that inflationary? Trillions of dollars in tradable derivatives turned into ash. the world governments can't print enough money to keep up with the bleeding.

Consumers are not buying anything and so companies are selling their inventories at a loss so they don;t have to store it. It's better to get something for it then throw it in the garbage. Developing markets will get squeezed as they depend on demand from developed countries to sell their cheaply made goods. They don't have enough local demand for their products so they will stall.

European countries have the highest exposure to emerging market debt. under this scenario, The USD and US stocks in general are looking pretty good. However I think we will be seeing low interest rates and little inflation for a couple of years.

If gold hits $1,000 anytime soon IMO it will be a short lived spike, much like it was in March. If gold is to rise in earnest it won't be for a while yet and there has to be a perfect storm