Thanks to Lance Lewis at Minyanville for this image:

Mr. Lewis is an inflationist and gold bull, and his sentiments here pretty much sum up the mainstream rationale of that species: “Gold’s bull market isn’t just a weak-dollar phenomenon. It’s a function of inflation, just as oil and other commodities.”

To which I reply, gold’s bear market isn’t just a strong-dollar phenomenon. It’s a function of deflation, just as oil and other commodities. This applies in all currencies, as the credit crunch is global, just like the bear markets in stocks and real estate.