THE FED HAS GIVEN THE ALL CLEAR...TO WALL STREET...
STOCKS ARE THE VEHICLE FOR THE REFLATION OF THE US ECONOMY... OF COURSE THAT CAN'T BE DONE WITH WAGES...OR INTEREST RATES...
SO THERE IS ONLY ONE WAY TO GO... A NEW BUBBLE IN STOCKS...
THIS IS LIKELY NOT WHAT LORD KEYNES HAD IN MIND AS A WAY OUT OF A DEPRESSION...BUT THIS IS WHAT WE ARE STUCK WITH...
THE PROBLEM IS COMMODITIES INFLATION WILL ALMOST SURELY FOLLOW STOCKS UP... THE ELITES TEND TO DIVERSIFY THEIR INVESTMENTS BETWEEN PAPER AND REAL ASSETS....
AND IT WOULD BE FOOLISH TO THINK THAT ONLY PAPER WILL RISE IN PRICE AND NOT HARD ASSETS...
THERE WILL BE ATTEMPTS TO KEEP HARD ASSETS DOWN...(SEE GOLD RECENTLY)...BUT THAT IS NOT A VIABLE LONG TERM STRATEGY...
OIL AND GOLD WILL FOLLOW STOCK REFLATION UP...SOONER OR LATER...
EVENTUALLY...THE NEW BERNANKE ASSET BUBBLE WILL END LIKE THE LAST THREE OR FOUR BUBBLES... BADLY...!
THERE IS SIMPLY NO SUBSTITUTE FOR REAL PRODUCTION AND REAL SALES...
AN UNPRODUCTIVE "PAPER BASED" ECONOMY SIMPLY CAN NOT WIN THIS FIGHT...
