Debt is actually deflationary. People in this country are feeling more poor than they ever have as a collective. They have a lot of debt and that debt needs to be serviced in dollars. This demand for dollars to service this growing debt load is bearish for precious metals. Hyperinflation is another story, but a little understanding of the modern monetary system will allay any fears of that. The problem in the long run is a turn down the long deflationary path of low yield, which we are on. The surprising thing is the duration of the asset bubble, as it is confusing to this theory. The chase for yield is the first stage of a turn I believe. Next is the long slow decline for all assets when people realize that low yields are not temporary. The lack of return will yield a lack of capital and the system will begin to consume itself in slow motion like Japan. I'm probably wrong, but that is just my 2 cents. The FED seems to be making it up as they goes along as well, as they have long since passed the last page of their text book years ago. GLTA
The "system" is abetted by fairy tale paper gold in the form of ETF and Mutual bull and bear "tracking" equities--they hold nothing but dead air, tho people think they are owning gold-- and options--those drain off the demand for "real" assets. It's the only thing holding up paper money, and those vehicles are not going away/.