04 December 2011
If the Eurodollars chart wasn't enough heartburn for the paper-huggers, here is a chart from Ed Yardeni showing the correlation between the price of gold and the amount of US Treasury and Agency Debt held by Central Banks.Personally I like to track the Eurodollars and the real interest rates, but this works about the same as I had suggested. Central banks are not profit-seeking organizations and are notorious for mispricing risk when it suits them.
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