TODAY THE DOLLAR COULD HIT 150 ON THE EURO...
AND OIL COULD BREAK 80....
THESE ARE ALL INEVITABLE IN THE LONG RUN...BUT LIKE DOW 10,000...WE LIKE TO WATCH "MILESTONES" HAPPEN...
ONCE GAS GOES TO $3 AND UNEMPLOYMENT TO 10%...THE US ECONOMY WILL SNAP INTO A CATATONIC STATE....
BUT THE PRINTING PRESSES WILL KEEP RUNNING...
THE ODD THING IS THAT IN THE MIDST OF THIS COLLAPSE...WHAT THE US ECONOMY REALLY NEEDS IS AN "INTEREST RATE" THAT IS NOT ZERO...!!
A ZERO INTEREST RATE ...JUST ASSUMES TO MANY CATASTROPHIC THINGS...
AND WHEN YOU ARE VESTED IN A CATASTROPHE HAPPENING... YOU ALMOST ALWAYS GET ONE...!
IN SHORT...IS IT TIME TO RAISE RATES AS BARRON'S SUGGESTS...PERHAPS, TO THINK OUTSIDE OF THE KEYNESIAN BOX...
BECAUSE, REALLY, AFTER ALL...LORD KEYNES COULD NEVER HAVE ANTICIPATED THE INSANITY OF THE GREENSPAN/BERNANKE "BUBBLES FOREVER" FED...!
PERHAPS THE FED NEEDS TO REALIZE THAT "RETURN ON SAVINGS" IS AS IMPORTANT AS "INVESTMENT" ....ie "SPECULATION IN PAPER ASSETS....?"
or, SUPPORTING THE NEXT DISMAL "PAPER ASSET BUBBLE" AS THE FED IS SO WONT TO DO?
THINK ABOUT IT...
