While gold has consolidated since topping in July and is still searching for a confirmed bottom, the $CRB suffered a much shorter pullback, bottoming in August, moving higher over the past 2 months, and is now poised to challenge its high set in June…

crb-vs-gold

Inflation is coming, or more likely 1970’s-style “stagflation”, the perfect storm for precious metals…

Of course, back then Fed-head Paul Volker was able to stem the tide by raising interest rates to 19%.  Then again – he was able to do so because at that time the US was the world’s largest manufacturer/producer nation, and the world’s largest creditor nation.  Now, 70% of the US economy is based upon “consumerism” (tapped out), and the US is now the world’s largest debtor nation…

crb-mas

So now what?

inflation-wave