I talked about it below in Coming Around, and I think we'll be seeing more rhetoric like this from leaders of countries all over the world. As the paper money being printed by The Fed starts to make its way out of the banks and into the hands of consumers, look out for higher prices on everything. This small bit of inflation will likely start to show itself later this spring and during the course of the summer months in everything we buy. Groceries, gas, everything we need in our daily lives. This little rally we have seen on the Dow Jones, S&P 500, and Nasdaq this week, will likely be slammed by reality within a few short weeks. I hear analysts talk about how everyone should beware of "bear market rallies", but I haven't heard any of that this week. Hmm. People should be learning from history, but hope is blinding.
Amendment: This one popped up on the Yahoo front page not even thirty minutes after I saw the Wall Street Journal post and posted this entry. Everyone may actually start seeing the big picture now.
CZ
2 comments:
I lost half my life savings in the downturn in the stock market. Now I save a little, but take what extra I used to put in the bank or investments and buy goods that I can use myself, sell or barter. Not a lot, just some food here, ammo there, petrol wood and seed. Not a stockpile, just enough where when the cost of those things goes up, I actually save more money than if I had put it in the bank for meager interest.
I went to cash some time ago to avoid a bigger loss than I had already sustained. It worked, because my loss would have been greater, but it still stung. I too have been "stocking up". Can't have enough ammo, precious metals, and extra food--and we should still have more.
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