It turns out that I was wrong. Obama has not spent $3 trillion more than he has collected in taxes-he has spent $4.5 trillion more than he has collected in taxes. The Fed, which has held interest rates near zero since December 2008, launched its plan of printing money to buy US Government debt nearly two years ago, swelling its balance sheet to nearly $2.3 trillion from a pre-crisis level of around $800 billion.

Two years ago, when the program began, the price of gold was just a bit over $700 an ounce. It is now selling at about $1350, or nearly double that. In two years.

Minutes due Tuesday from the Fed’s most recent policy-setting meeting may show that the Fed is planning to launch another round of printing money to buy government debt. Inflation, here we come. Buy gold, buy gold now. Maybe we will see gold hit $3000 before the next election. I hope not, because what that would mean for our economy, I dread to imagine.

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