Accirding to Bloomberg "the U.S. Treasury Department said it plans to sell a record $81 billion in its quarterly auctions of long-term debt next week and replaced its inflation-protected 20-year bond with a reintroduced 30-year security." By choosing to replace its 30-year TIPS with fixed rate, 20-year notes the Treasury is telling everyone that even they believe the US will have higher than normal inflation. With such an obvious move, I don't understand why they just don't take out a full page ad in The Wall Street Journal and tell everyone straight out. The link to the story is here.

Higher inflation will continue to drive gold higher.


In another story that continues to reinforce the strength that gold will continue to have going forward, yesterday's Wall Street Journal headlined "Fed Statement May Let Gold Continue Upward Course"... "Federal Reserve officials did not offer any hints Wednesday on when they might start to tighten monetary policy for the foreseeable future, which may well mean a green light for further gains in gold." Since the whole story needs a subscription, I have linked the GATA release which carries the story in full... and the link is here.