Something is wrong in Britain and gold

Something is wrong when politicians think that paying people to work less will help in a recession.

And:

Gold has been touching 900 dollars. On a cautious note: I think Gold will fall a lot in the coming weeks. But I won’t short it as the potential inflation in the system is massive, and I have no idea when prices will shoot up. In other words, its to high risk. The trade for me is to buy it low, not to short it on the way down. If it doesn’t fall, but rises to 1000, I will obviously have lost the train, and that’s fine.

What bothers me a bit is that the whole inflation/deflation scenario is getting increasing hard to follow. Private Banks are contracting and the public sector is expanding. I think it’s too hard to say much about what will happen in the short run. But longer term, the world economy will be in a trouble for many years, and we will get massive inflation somewhere down the line. Especially in USD and GBP.