Well, the very bad Doctor Bernanke has spoken; and the Fed will continue its $85 billion purchase of securities into perpetuity. If my math is correct, that $85 billion per month is something like $1.020 trillion over 2013 year. Now, isn't that interesting? That $1.020 trillion is approximately what the federal deficit will be for 2013. In other words, the Fed will completely monetarize the federal deficit for 2013; and I guess all deficits there after. Bravo, Ben! You have just utterly destroyed the savings of all the retirees out there who live on a fixed income with your expansionary monetary policy. But, Ben states that "core inflation" is under control. Yes, it is true only if one does not buy food, gasoline, or need medical care. He states that 3% "core inflation is ok. However, what he does not tell you that at that rate of inflation, the value of your $1 today will be worth $.50 in twenty years. Folks, I believe that we are still in a deflationary cycle, but the cycle is definitely on borrowed time.
Now, in regard to the Dow Jones Industrial Average, see the following chart with my comments inserted:
Now, in regard to the Dow Jones Industrial Average, see the following chart with my comments inserted:
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