“Just how can the Fed credibly promise to be irresponsible…?”  Here’s a thought—that tiny handful of investors and analysts warning how Fed policy risks hyper-inflation are in fact doing the central bank’s work.

Gold rallied from a six-week low hit earlier in the global session, rising above $923 per ounce with currency fundamentals proving the dominant factor as the dollar got stung by concerns over U.S. indebtedness.

Gold steadied today as the dollar index reversed earlier losses, but trading was muted as the U.S. currency remained hemmed into ranges ahead of a Federal Reserve meeting next week.

While the mainstream media has been focused on the run-up in equities, one overlooked sector has turned “red hot,” according to Justice Litle in Taipan Daily. Justice is talking about the grain markets – foodstuffs like corn, wheat, soy and sugar.

Gold slipped on Tuesday, pressured by a rising dollar and a firmer tone on equity markets, but analysts said inflationary concerns would underpin bullion’s safe-haven appeal.

Federal Reserve Chairman Ben S. Bernanke said that he expects inflation to be “quite low for some time,” but that the Federal Open Market Committee will begin publishing its long-term inflation forecasts to promote transparency.

The gold-to-oil ratio is at ten-year highs – a single ounce of gold can now purchase 22+ barrels of WTIC crude. But what does it mean?

Bank of England governor Mervyn King said Wednesday that dangerous deflation is opening a door for further interest cut rates.

Job losses begin to accelerate…  Currencies inch higher…  News of the weird…  China announces a stimulus plan!

Here’s a not-too-controversial prediction. Later this month, Big Merv King will get the Basildon Bond out and pen his missive to the Chancellor, Alistair Darling, explaining why inflation has gone over 3.0%.