Swiss Zulauf is a sharpie
I dont follow him much, but we are in fine synch
consumer rebound is spent, done, kaput
tax refunds, mortgage refis, lower energy costs, debt to the hilt
jobs will continue to erode slowly, and not rebound much
inflation must occur to exit the funk
and such Fed-induced inflation will eventually lead to higher prices of goods and commodities
I find it almost TRAGIC that mainstream American folks and esp investors CANNOT EVEN DEFINE INFLATION, nor do they know ITS ORIGIN
inflation: rapid increase in money supply, resulting eventually in widespread higher prices
in 2001 the Fed increased money supply by 20%
Zulauf claims they will continue to increase money supply at these staggering high levels
this will lead to higher prices, higher interest rates
but the first jolt will be commodity prices
most investors claim WE HAVE NO INFLATION, thinking prices
but they cannot tell you how higher prices happen
bigtime inflation is in the pipelines
that is why longbond yield has not and will not come down
that is a principle frustration for GreenManiac
bigtime blueblood bondholders are the smartest most conservative guys around
gonna be fun
Zulauf loves mining and mineral stocks, hates banks
smart guy, since more bankruptcies are coming, and bigbanks will be holding the bad paper
we agree
we will see, since nothing is guaranteed
we might see another yearlong splurge of debt-based spending
and then the explosive effect on prices from the mindboggling, unprecedented, horrific inflation that GreenFuche has wrought
I fully expect GreenScrotumBag to go down in history as the most irresponsible Fed Chairman ever seen
he is like a pyromaniac who sets fires, and is first to arrive with the fire hose
then is given credit for putting out the fire
the examples during his tenure are so numerous
thanks for the post
/ Jim |
