When someone points to the Fed, the U.S. government and its “central planning” or “money printing” as the primary cause of the surge in the price of gold and justification of their USA hyperinflation theory, you might do them a favor and let them know that they’re right about the flaws of central planning and excessive money printing but that they’re focusing on the wrong central bank. Let me explain why that is the case and who the real “culprit” is.
USA Inflation vs. Gold Price
Since the early 1970s US inflation and gold prices have maintained a fairly high correlation [see Figure 1 below]
(Click charts to enlarge)
but there has been a notable divergence over the last 10 years [as] is shown more clearly in Figure 2 [below], where we clearly see that gold prices have soared nearly every year during a period of stagnant economic growth in the USA that has generally been characterized by low inflation…. (please go here to continue reading this enlightening article.)