Coming QE will be big.

The world is heading for a deflationary Depression. Von Greyers thinks that the next QE will be big, involving a joint action of the FED, IMF and the ECB. Look at the weekly gold price:

There are two factors involved here:

1. Postponing action beyond the next FED meeting would make it difficult to influence the Stock Market in a positive way.

2. If Deflation is allowed to take hold, it would reduce earnings AND make it tougher to finance deficits.

It is still possible and even likely that there will be at least one attempt to beat down gold prices. Some entities are now so short on gold and silver that if gold prices go up, the shorting banks will take a serious hair cut. Just as Goldman Sux did.

So, how fast will gold prices go up? Hard to forecast. It will depend on the nature of what the Central Banks will do. Operation Twist did not work.  And unless the next QE is big, they might as well forget about it. Krugman has been chiding the regime (including Bernanke) that the stimulus packages have been too small and the House will not agree to increased spending.