Currency,stock in-flows, Fed, I-rates,Europe and Asia.
Juggling and kicking the can down the road is one thing.
Now, we are faced with a conundrum, of far reaching effects having claws that make a grizzly seem clawless.
Japan is convinced they learned from us, debase your currency is the best and quickest way to to bost exports,buoy your stock market and create the wealth effect.
Other countries attempting similar tactics.
So the race for the bottom started months ago.
Then,complicate matters with the Euro zone.
As the Euro zone decides whether or not to finance their way out, AND one or two counties leave, the dollar VS Euro ratio changes,dollar gaining strength.
Bad for US markets and bad for exports.......
The measure will be WHO has the strongest currency of all, with ALL currencies dropping.
Typically, PMs rise in low interest rate environments, and WEAK dollar VS other currency environments.
Will I rates rise soon?
Will the dollar gain strength against other currencies?
Take this debate over to include China, India and emerging markets.
We have a mess......eventually......but when?
And add this to the mix.
Majority of CNBC gurus are bullish. Calling for 15,000 DOW in weeks and today Ron Baron saying 28,000 within10 years.
He's got your skin in his game.
Nouriel is hedging, what if this and what if that?
Mutual Fund inflos positive 4 weeks in a row. That means Joe's not buying six packs.He's buying shares of TAP.
So the herd is running with the bulls.......
Time to worry?
Not me worry.
Now let's talk about inflation. Real inflation. The kind of inflation that not only impacts the price of veal chops and cotton products, as well as fuel, but also impacts your kids notepads,pencils, and preparation H.
OMG, we DO have inflation. So the question is when will the Government actually print the truth?
Answer; It doesn't matter.
Suzy Homemaker (Not trying to disparage Suzy) doesn't understand economics, GDP, finance, derivitives etc but she DOES know how much her household costs are.
And when Joe comes home and is told NO MORE POKER NIGHTS, we can't afford it, and buy cheaper beer, then it hits home.
And home has been hit.
The only deflation we are experiencing, are the fake numbers being put out there that the public is no longer buying into.
You think only China keeps 2 sets of books?