From the Dow Theory Letters (Richard Russell). With the Fed priniting more and more money to keep the economy going (yes it is the printing of money not economic basics) the most horrible (economic) problem we can imagine will happen one day, Could be very soon. Back to the markets, on the worrisome side, I sense some major occurrence in the coming months. What lies ahead may be the item that’s least expected – hyperinflation. Stephen Leeb explains the progression: The dollar falls, gold, oil and food prices rise, China buys commodities amass. Import prices then rise, corporate sales and earnings slow and unemployment grows. In the face of all this, the Fed prints billions of more money in order to prevent a sinking economy. At some point this money will surge into the economy, giving us the early hints of high commodity prices and inflation, which in due time will turn into hyperinflation.
Posted on: Tue, 18 Nov 2014 21:21:12 +0000
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