January 16, 2013
Stealthflation "Race to the Bottom" *
Politicians generally make noise or law, but rarely both at once. That's why I'm not too concerned about the gun-grabbing hysteria in the news these days. The noise achieves multiple goals: It makes the loudest politicians look like they care the most and are "doing" the most; It also distracts from real issues like debt, spending, Benghazi, and the "Global 'Currency War.'"
The massive Fed balance sheet expansion has resulted in the U.S. dollar declining about 11 percent against a basket of world currencies since QE began in 2009. In the meantime, stock prices have doubled since their March 2009 lows and the Morgan Stanley Commodity Related Index has gained about 80 percent.
And yet, fuel prices continue to fall as domestic production soars (and world demand shrinks.) Think how inexpensive energy would be if you could buy it with a sound dollar.
* You thought "race to the bottom" was my characterization, didn't you? Actually it was, even before reading the article in full.Monetary Policy We're from the government, and here to help. Posted by JohnGalt at January 16, 2013 3:18 PM