Baltimore — (TFN): I stuck to my word and bought gold. If you follow the markets long enough, you earn a full grasp of the psychology behind it all. After a while, you notice the tiny quivers and false starts that signify a move in either direction.

I used this insight and logic to warn investors about an imminent downturn in gold prices earlier this month. I got a lot of “feedback” from disappointed gold bugs. But it didn’t take long for them to eat their words as the price of an ounce of gold fell by nearly 10% in the last month.

Let’s take a quick look at what’s happening in Brazil, over and above the 2016 Olympics being awarded to Rio de Janeiro.

I confess… I got it wrong with gold.

“Gold continues to climb…stoked by inflation worries,” says a headline in the International Herald Tribune.

$1,055 for Gold! Global recovery prospects fuel run on the dollar…Trichet to defend the dollar today? Central Banks are diversifying…And Now… Today’s Pfennig!

One of the most interesting news items I’ve found was on the cover of The Financial Times, where I learned that a guy named Lahde “made tens of millions of dollars from betting against the financial and property sectors during [the] past two years”, and he now wanted to thank “the low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA” who made it all possible for him to find enough suckers.

September job losses soar to 263,000…G-7 does not make statement on currencies…RBA meets tonight…India & Brazil pull the right strings…And Now… Today’s Pfennig!

Welcome to Zombieland…where the most amazing things happen…Starring Ben Bernanke, Tim Geithner and a cast of millions…

The new movie – Zombieland – about a group of survivors in a world of zombies, was the biggest grossing film in America and Canada over the weekend. It must reflect the zeitgeist of the North American public…a deep feeling that we are living in a decaying world.

Currencies rebound VS the dollar…Aussie and kiwi lead the currencies higher…Data and Central Bank speeches today…Gold rebounds back to $1,000! And Now… Today’s Pfennig!

On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible. On the other side of the argument, many proponents of inflation are calling for Zimbabwe style hyperinflation. In this business, everyone is entitled to their opinion; however it is my contention that we will get neither deflation nor hyperinflation. If my assessment is correct, once business activity picks up, our world will have to deal with high inflation.