Gold: Over-Loved and Misunderstood

Many analysts have confused the Fed's increasing its balance sheet from $900 billion to $2.2 trillion as signs that inflation is right around the corner. What these folks have failed to understand is that credit is still contracting, the velocity of money is not expanding, and an overhang of excess labor and production capacity caps any pricing power. The real risk is not inflation, but deflation as debt is liquidated, causing money supply and credit to contract even further. Gold is over-loved and misunderstood. I think it is going lower.