If we listen to the powers-that be and their news media parrots, we’d all believe that a full-fledged economic recovery is right around the corner. But the stock market recently slipped again on yet another dismal jobs and inflation report. Yep, the Fed is concerned that inflation is too low. Here we have to pause and interject, just wait, inflation like you won’t believe is coming to your doorstep, Mr. Federal Reserve. But back to the stock market.
Even in the face of the first rise in unemployment claims in three weeks, which confirmed that employers are NOT ramping up hiring at all, the Dow Jones only fell ten points. Analysts believe this is because they expect the Fed to step in soon and start tweaking interest rates to save the day.
Interest rate manipulation is like putting a Band-Aid on an amputated foot. Too little, too late. It might make a few people feel good in the short term but ignores the long term result of out of control spending of the continually devaluing flow of currency flying out of government printing presses. They’re tossing it around like Monopoly money and that’s soon going to be what it’s worth.
Once inflation picks up a head of steam and turns Mr. Bernanke into roadkill, the Fed will not be decrying the low rate of inflation. They’ll be soiling themselves and wondering what they can do to stop it? And then the stock market is really likely to take investors on a wild ride, or rather plunge. And if those who do not learn the lessons of history are doomed to repeat them…
Nero is fiddling and Rome will be burning soon.
The Creating Wealth Show
Flickr / Cindy Funk
