Notice when the ramp job started. Right when Bernanke started the latest round of his monetary games.
No, this is not "supply and demand." It's excessive liquidity in the market which is being created by Bernanke, on purpose, with the intention of driving asset prices higher.
The problem is that there's only two things that are going up: Commodities and stocks.
Among things definitely not going up are wages, houses and consumer sentiment - that is, the willingness to go out and spend.
Guess what else is going to go up? Groceries and other goods. Why? Because as I've reported since August, the increases in commodity prices started showing up in the PPI reports at that time, and once that goes into the pipe it will come out - either as crashed margins or higher prices. It cannot do otherwise.
Our economy will not "withstand" these oil and gas prices. Not without a massive contraction. I am already seeing it - again - on the roads around this area. Less traffic, fewer shoppers. The so-called "recovery" that was spiked through all of the monetary drugs by Ben has now resulted in loose-money drug poisoning, exactly as it did in 2008.
This same scheme was run in 07 and 08 and did not work. It will not work this time either. But we have blown an additional $4.5 trillion in government deficit spending between then and now, which is new debt that now has to be paid out of diminishing tax revenues. That in turn will eventually result in either Uncle Sam's credit card getting cut up or the rug will have to be pulled out from under this scheme by Bernanke before it happens.
The manipulation and attempt to get private debt additions going again has failed.
All that has happened is that speculation has gone through the roof and the corporate leverage index stands near all-time highs - higher than 2000 or 2007.
We're not going to get out of this in one piece folks, and there's nobody in Washington with a set of balls that will tie Bernanke to the mast and force him to stop this crap under penalty of The Fed being de-certified and thrown into the Potomac wholesale.
I hope you're prepared.
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