Well, Puplava's scenario is playing out exactly as he had described it. Benny today said he would cut interest rates. The markets are already pricing in a 50-bp cut. Stocks are rising. Dollar is falling. Gold has gone through the roof. Silver has started accelerating and YTD has risen faster than the dollar (the best indication that we are getting into hyperinflation rather than deflation).
The next thing will be a tax cut announcement at the SOTU by George W Bush. More free money! More helicopter money so that we can all go and spend!
And all the time, the deflationists have been whining - "nah, nah, this won't work", "Nyah, that won't work", "The Fed is powerless", blah blah blah.
Yes, we all know it won't work. But it will unleash inflation in the prices of everything we need (food, energy, healthcare, education...) and deflation of everything we own (stocks, bonds, houses - not necessarily in terms of helicopter money, but in terms of real money i.e. gold and silver). |
