Inflation means gold is going up.This is simply stunning. A quick parsing of the data released every ten days by the
National Bureau Of Statistics of China indicates that
theaverage price of food in 50 cities in the January 21-31 period hasincreased by 4.6% compared to the prior 10 day period (and 416%annualized)! Granted, this is a simple average calculation ofthe 29 food items tracked without any weighing, although a quick glanceat the components confirms that tonight's Chinese CPI will likely be adoozy. Some of the key changes: cucumbers up 28.2% in ten days, kidneybeans up 21.9%, rapes
[no pun] up 14.5%, tomatoes up 12.9%,hair tails up 4.7%, bananas up 3.6%, chickens up 3.1%. And this, again,is in the past 10 days! But not all is lost: Soybean oil actuallydropped by 0.1%. Time for China to release an adjusted adjusted CPIwhich excludes all foodstuffs except for Soybean oil (and remember, inChina,
food is 31.4% of CPI)... which actually is exactly what is about to happen.