CLEARLY THE SPECULATORS WANT THE FED TO BE AS INFLATIONARY AS POSSIBLE...
BUT AT SOME POINT THE FED HAS TO CONSIDER THE "REAL ECONOMY" AND HOW IT WILL SUFFER UNDER THE "NEW INFLATION" DEMANDED BY WALL STREET...
THE DOLLAR IS PLUNGING...AND A SHARP RISE IN OIL WILL NOT BE FAR BEHIND...ANY ATTEMPT TO LOWER THE PRICE OF OIL WILL REQUIRE A STRONGER DOLLAR...IN WHICH OIL IS PRICED...AND PRESENTLY THE ONLY WAY TO DO THAT IS BY RAISING INTEREST RATES ON THE DOLLAR...
WE ARE SLOWLY MOVING INTO THE MID 1970's SCENARIO AGAIN...WHERE THE US ECONOMY HAS TO BE TRASHED BY HIGH RATES SIMPLY TO SAVE THE DOLLAR...
OF COURSE THE WORLD COULD ABANDON THE DOLLAR...AS THE PRIME RESERVE CURRENCY...BUT THAT WOULD BE EVEN WORSE...AS THE US CONSUMER ECONOMY IS TOTALLY BASED ON DEBT AND DEFICITS...
BY THE END OF THIS CENTURY THE US COULD BE LIKE ARGENTINA...A POST INDUSTRIAL 3d WORLD ECONOMY...
