An assessment of the inflation vs deflation quandary reveals government's preference for the inflationary path because deflation is perceived as more destructive to the banking system and the economy. James Bullard, President of the Federal Reserve Bank of St. Louis, lately expressed favor for a policy prescription of more quantitative easing via monetization of government debt (i.e., Fed purchasing Treasury securities). As confidence wanes in the outlook for the American economy and its currency, gold stands to gain as the key beneficiary of resultant safe haven investment flows occurring both domestically and abroad. Featuring Pete Grant, Jonathan Kosares and George Cooper.

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