Gold isn’t going to $2,000 an ounce. Before you gag on your coffee or suffer chest pains, allow me to explain.

Economist Robert P. Murphy at the blog Free Advice must have heard me screeching with Total Mogambo Disrespect (TMD) about Congress and Obama deficit-spending almost $2 trillion this year, and he says, “If fiscal policy is a disaster, monetary policy is even worse.”

The U.S. government is going to have to print up trillions of dollars worth of new money in an attempt to break out of this economic crisis. This excess supply of currency in circulation is going to lead to demand-pull inflation.

Fed opens the pocket book…  Creative measures…  Inflation/dollar debasement concern…  Currencies soar…  And Now… Today’s Pfennig!

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 news this morning is as grey and damp as the weather.  First, the U.S. stock market did nothing yesterday. The Dow ended down 9 measly points. The Dow is about 10% above its November low; have we seen the rebound already?

A boom is coming, says Ted Peroulakis. Unfortunately, it’s a boom in inflation. It looks increasingly like the Fed will have to print its way out of this economic crisis. And the huge national debt burden will need to be inflated away. Ted says investors can protect themselves against this trend by holding the ultimate currency: gold.

Obama’s stimulus plan will only end up making a sick patient even sicker, says Jon Herring. But that won’t stop it happening. Jon says infrastructure firms stand to benefit in the short run. But the real long-term winners will be companies that benefit from rising inflation.

Gold prices have fallen sharply to one-month lows this week. This is great news for investors, says Dan Denning. It’s a chance to buy the precious metal at a price that will soon be considered a steal.

Fears of deflation are overblown, says Ed Bugos. He refutes the use of the ‘velocity of money’ theory as a reason why prices are ‘destined’ to fall. While a bout of deflation is possible, we know that the Fed will do what it takes to re-inflate. And the real worry should be that it will probably succeed.