Market musings.
It seems pretty definite that all the the money pumping by the US in recent history is starting to show up in commodity inflation. It doesn't do any good to blame it on one political stripe or another, they've all been doing it, and for quite a while now.
The US benefited from a collapsing Japanese economy and the web based technological revolution in the 1990's, causing capital flows back to the homeland, and a sense of prosperity. China has changed everything. Now, globalization is evening out (as it must), the Asian economies are doing relatively well, and they getting nervous about recycling their profits back via printing of their own to absorb treasuries.
Unending US fiscal and current account deficits have brought us to an inflection point, and capital now flows outward. US companies are doing well, but it's emerging markets driving their growth, plus, they now have competition. Bottom line: jobs are not coming back to the US and so they can only print more money.
Add to this the fact that it almost definite that Slick Willy Clinton organized a gold swap and lease program in 1995 to make the US dollar strong and get him reelected. Now, the silent dumping of gold to mask the money printing has come to its logical conclusion and will make precious metals precious again for a long time.
Time to pay the piper.
Just my opinion.
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