This King World News radio interview is about gold and silver and the recent whistle blower that exposed gold and silver manipulation. The reason I am posting it is about a third of the way into the interview an interesting comment is made about a 2001 article or study that talked about the financial derivitive markets allowing an avenue to soak up excess monetary inflation so that real asset prices do not reflect the real inflation of the money supply. The comment is really an aside to the interview but the statement so captured my attention about the influence of derivatives vs inflation I wanted to get some other opinions.

Could all the futures and other derivatives over the last twenty or so years create a market large enough to soak up immense inflation so consumer prices really do not reflect the inflation?

Here is the interview.

Here is King World News . They have some really good interviews.

John