Friday, March 7, 2008

More fed money

Let us be clear here folks. The reason we are in this mess is because of easy money. Liquidity sloshing around begging for laxed rules to be given away. Now we are faced with the realities of this liquidity.

So rather than bite the bullet and let free (I use that term lightly) markets act as they should, the feds today are offering up more and more easy money. The terms of the acution today for one.

This will only force more dollar plunging thus causing more commodity running. Simple here folks, If I have a dollar in my pocket and now the feds print more dollars, this dollar in my pocket is worth less now. If I have to buy something it will take more dollars to buy it. So almost everything I buy costs more.

By now you are so sick the the same story however rich it is making you, "Short the dollar and long the natural resources". This should be every investors mantra for the forseeable future. If not, then you suffer the consequences.

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