The question of the gold price.

As is obvious from my recent posts, I have given up attempts to predict when the Bull Market rally in gold will resume. And resume it will, because the FED is printing money (mostly to monetize debt, but also to stimulate the economy) and has been joined by the Bank of Japan and the Bank of England.

Developments in regions of the world are uneven, for example while China is trying to encourage gold ownership by the population, India is doing the reverse by a 6% import tax. The deflationary wave of real estate prices has now reached Ireland and Denmark, while it eased in the US. US inflation has reached a critical point, where food and gasoline are rising, but durable goods are rising much slower. And forecasters are just as chaotic: KWN forecasts $11k/oz, while Larry Edelson still talks about $1,450. Gorge Soros has reduced his gold exposure by 55%, while JP Morgan is forecasting the end of the gold Bull Market. See what I mean?

It is obvious that gold price is controlled, but the logic of why and how is not clear. If gold prices were allowed to rise, central banks would have better balances and countries might have some inflation and economic stimulation instead of the deflation and stagnation. If gold prices drop as Larry forecasts, there will be a run on supplies.

The financial imbalance continues to build. Gold shorts have reached record highs and JP Morgan's silver shorting is mind boggling. The bank's exposure to derivatives is larger than the GDP of the whole world. How will this be unwound? Can it be unwound?