Theoretically, when inflation occurs the government has to raise interest rates (US Treasury Notes, etc.) in order to attract buyers of its debt instruments. Otherwise the money stops coming in. HOWEVER, when China (and others) stopped purchasing our debt because of looming debt and insolvency issues, We started "buying our own debt" printing money out of thin air to the tune of 85 Billion per month, that's over one trillion dollars of 'monopoly money' a year. This devalues the usd and destroys wealth for all americans. Welcome to reality.
Funds run for George Soros and Daniel Loeb sold their entire GLD stakes in Q2.