EXACTLY WHAT STOPS GAS FROM HITTING $3 BY THE 4TH OF JULY IS UNCLEAR...
THE TREND IS IN PLACE...THE DOLLAR IS WEAK...THE SUMMER DRIVING SEASON IS STARTING UP...THERE IS A FAINT "RECOVERY" BEING TOUTED BY...THE TOUTS...
BUT RECENT MARKET ACTION HAS NOT BEEN A VOTE OF CONFIDENCE IN THE FED'S LONG TERM STRATEGY...ALTHOUGH THERE IS NO SERIOUS DISSENT ABOUT THE TACTICS FROM SERIOUS ECONOMISTS...(IE THOSE WHO HAVE NEVER APPEARED ON FOX NEWS)...
HERES THE PROBLEM:
THE FED IS OUT OF BULLETS...
THERE IS NO MORE "BOILING OIL" TO THROW ON THE HEADS OF THE PANIC SELLERS...
THE NEXT TIME PANIC SELLING KICKS IN...WHAT DOES THE FED DO...?
HERES A HINT:
THEY WILL RAISE RATES! THUS KICKING THE BEARS IN THE ASS IN A NEW A DIFFERENT WAY...THE OLD FASHION WAY!!
BUT SHHH...DON'T TELL LARRY KUDLOW...HE'LL FREAK!
WE ARE IN UNCHARTED TERRITORY NOW...
BUT ONCE THE FED STARTS RAISING RATES TO DEFEND THE DOLLAR...AND WRING THE LAST BREATHE OUT OF GASPING WALL STREET SPECULATORS AND LOOTERS...
WE WILL REVERT TO "CHARTED TERRITORY"... IT WILL BE BACK TO THE 70'S...
BUT HEY...AT LEAST BACK IN THE 70'S THE US ECONOMY STILL HAD A MANUFACTURING BASE TO SPEAK OF ...UNLIKE TODAY..
