Taikun, <<Could this set us off on a period where higher commodity prices don't result in higher equity prices? I see lots of sell the news trading.
Thoughts?>>
When debt is at 320% of US GDP, the FED raising rates to squelch officially 'tame inflation' is a political non-starter, but does make good news sound bite;
However, as noted here worldmarket.blogspot.com , the FED can lose control/influence over all rates except the FED rate, and should it happen so, then "Game Over, Player #1"
So, I think commodity prices will reach, and surpass historical highs on inflation adjusted basis, about another 150% up from now, and at the same time, housing and equity will get absolutely crushed, and bonds will become a dirty word.
Chugs, J |
