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How the Fed Stole Christmas


Scott Bleier, founder of Create Capital stopped by Breakout to give us his thoughts on the Federal Reserve's latest stimulus measures. Suffice it say he hates it the way kids hate earaches. In the attached video he explains his thinking and walks through just some of the below-the-radar ways QE3 impacts you.

Bleier thinks it's going to be a bleak holiday season. Here's what he had to say in a special guest column:

Since the beginning of June, when the Europeans promised endless QE and the Fed leaked that QE3 would be coming, most commodities have had huge runs from trough to peak.

As these price increases move through the system, consumer goods prices will increase at least as much as the commodities, and just time for the Christmas inventory channel build.

Realize that these price increases do not reflect the supply & demand metrics for most of the materials in question. In many cases though as prices have increased, demand has actually lessened!

So, you want to buy your wife some jewelery? Gold and silver are up almost 15% and 25%, respectively. Want to make a nice dinner for the family? Corn is up 40%, wheat is up 50%, and soybeans have risen 30%. If you care to drive anyone, anywhere, oil and gas are up 30% and 35% respectively and the basket known as the CRB index of commodities, which includes energy, grains, industrials, meats and precious metals, is up 20%.