G.G. sent us a link to some clueless punditry from The Economist crowd: More Inflation Is the Cure for the Fed’s Impotence [1]. The Fed is locked in to ZIRP [2] and endless monetization (“Quantitative Easing”) because the service cost on the Treasury debt would be unsustainable if interest rates were to rise. When inflation resumes and interest rates do jump, it will be Game Over. The Dollar will crash, interest rates will run up past 15%, and the economy will stagnate. Be careful what you wish for, Mr. Avent. At this point the Fed is irretrievably stuck until Der Tag, when the Dollar will be destroyed. Prepare for that day, folks. Get out of Dollar-denominated assets, and into tangibles like productive farm land, guns, ammunition, full capacity magazines, and precious metals. I’ve been advocating this hedging strategy since 2007 [3]. Those investments have all yielded quite well (and in fact amazingly well, in recent months), while also providing insurance against the inevitable Dollar collapse. Are you listening now?
Get ready for a meat shortage [5] (Thanks to Lydia M. for the link.)
Items from The Economatrix:
The $995 Billion Sequester Cut Is Actually A $110 Billion Spending Increase [6]
Wal-Mart Suppliers Could Be Hit With Payroll Taxes And Gas Prices [7]
Roubini: Don’t Underestimate The Economic And Financial Impacts Of The Sequester [8]