Gold and silver rallied back with the G7 intervention in the currency markets on behalf of the Japanese yen.
I think the rationale that this was in support of Japanese exporters is more rationale than fact. The exporters' biggest problem is that their supply chains and manufacturing are disrupted.
Rather, the intervention at this time was most likely in response to what the central bankers euphemistically call 'disorderly markets.' The intervention and its timing had everything to do with the yen carry trade, and the pressures that the extraordinarily strong yen was placing on global financial institutions, especially in their hedges and spreads. There was also some concern that the dollar was falling too far, too fast.
I am rethinking my estimates of a hyperinflation. There is also and increase in the forecast of inflation that will accompany the stagflation to which I am more positively inclined in the intermediate to long term forecast.
I consider a real deflation very unlikely, only as a policy decision. The risk as I see it is an inept slide into a deeper inflation than the central bankers intend.
As such I am now even more inclined to protect my own assets in hard currency and precious metals.
