THE DOW WILL RISE TO 18,000 THIS YEAR...BUT THE DOLLAR WILL BE SO TRASHED THAT STOCKS WILL NOT REALLY BE WORTH ANYTHING...
BUY GOLD OR OIL INSTEAD...AND LET THIS MANIA TAKE IT'S COURSE... EVENTUALLY THE FED AND WASHINGTON WILL HAVE TO CONFRONT 20 YEARS OF ASSET HYPER-INFLATION...EVEN WHILE THE REAL ECONOMY IN THE US HAS BEEN HOLLOWED OUT TO NOTHING...
THIS WON'T BE PRETTY BUT IT IS THE ESSENTIAL END TO A DECADES LONG ABUSE OF MONETARY POLICY BY THE FED...
THE MOST OBVIOUS ANOMALY IS THE NOTION THAT THE FED CAN LOWER RATES IN THE FACE OF A DECLINING DOLLAR...TO "SAVE" THE REAL ECONOMY... THAT JUST CAN'T HAPPEN... OIL WOULD SOAR...THE DOLLAR WOULD PLUNGE...
PART OF THE PROBLEM IS THAT THE STREET HAS HAD TWO COMPLETELY SEPERATE "DIALOGUES" WITH ITSELF TO MAINTAIN THE VARIOUS BUBBLES...
THE HOUSING BUBBLE IS COLLAPSING EVEN AS THE STOCK BUBBLE ACCELERATES TO UNHEARD UP LEVELS...
THIS HYPERLIQUIDITY GAMBIT WAS TRIED IN GERMANY IN THE 1920'S ...WHEN THEY HAD THEIR "REPARTATIONS PROBLEM"....JUST AS WE NOW HAVE OUR "CHINA TRADE DEFICIT" PROBLEM...
YOU SIMPLY CAN NOT HYPER-INFLATE YOUR PROBLEMS AWAY WITHOUT SERIOUS PROBLEMS DEVELOPING...
WE ARE ONLY AT THE BEGINNING OF THE HYPER-INFLATION... IT WILL DEVELOP SLOWLY AT FIRST... BUT I FORSEEN A BIG ONE DAY JUMP IN OIL AND/OR GOLD THAT WILL FORETELL THE COMING PROBLEM IN WAYS THAT THE TOUT MEDIA CAN NOT DENY...
