Recently, I was turned on to the website “National Inflation Association“. They are one of the numerous groups that are concerned about the possibility of hyperinflation and the detrimental effects of inflation. The charts below are all from their website, and the text below is from a recent email from them.
The Dow Jones declined by 376.36 points today to 10,068.01, but to us it is meaningless what the Dow Jones gains or loses in nominal terms. The number NIA cares most about is how the Dow Jones performs in terms of gold or the Dow/Gold ratio.
One of our top ten predictions for 2010 that we announced on December 21st, was that we would see a sharp decline in the Dow/Gold ratio from 9.3 to below 7.
Two weeks ago with the Dow/Gold ratio at 8.7, NIA said, “We expect this downward trend in the Dow/Gold ratio to accelerate in the weeks and months ahead.” Today the Dow/Gold ratio finished at 8.5.
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