Peter Brimelow: Gold May Be Signalling Hyperinaflation

That opinion isn't (necessarily) his own; it's his distillation of goldbug opinion over last week. Both gold and gold stocks, as measured by the Amex Gold BUGS Index, did well last week. Trader Dan is of the opinion that gold will make a try for $1,550. Unsing Fibonacci analysis, an anonymous ScotiaMocatta analyst says gold is clearing the way for a try at $1,600. The Aden sisters like what's happening to gold stocks, as based on their proprietary advance-decline line comprised of 26 gold stocks.

This sense of financial crisis is widespread. On Friday, The Gartman Letter uncharacteristically engaged in a blistering denunciation of the Fed for letting the “adjusted monetary base” surge: “In only five months, the base has risen 30%. ... Where are the adults, we ask?”

From Australia, The Privateer notes: “Today, the Fed’s balance sheet is more than three-and-a-half times the size that it was in late 2007.”

At JSMineset, veteran Jim Sinclair pulls seniority: “Here we are at that place we have anticipated for the past 45 years, knowing that all the games being played had to play out.”

Sinclair predicts hyperinflation — in language that I won’t even try to get past MarketWatch’s editors!