Stock Capitalist

The Bernanke Fed’s addiction to monetizing the stock market and cheapening the US dollar has some interesting side effects. Each Fed rate cut has translated into higher gold and oil prices, which fuels inflationary psychology worldwide. …. Central bankers have poured massive doses of cash into financial markets to ease a liquidity crisis , sparked by the sub-prime debt debacle. The Bank of Japan offers near zero percent yen loans for global speculators. Much of the money …

Gold prices have already surged 20% and oil is up 30% since mid-August, spurred by a half-percent interest rate cut in September intended to pump billions of dollars into financial markets to ease a liquidity crisis. “The Fed is driving the dollar … “The Federal Reserve Board acted ‘like a bartender’ in lowering interest rates and its actions are contributing to a stock market bubble in the U.S.,” said Marc Faber, publisher of The Gloom, Boom & Doom Report to Bloomberg. …

Nowadays, traders of all different stripes are betting on more rate cuts by the Federal Reserve in the months ahead. Since mid-July, the odds of a US economic recession have been mounting, led by sliding home prices and the first loss of .. . … With booming commodity and stock markets detected in all corners of the earth, and out of control money supply fueling inflation, the global bond vigilantes should be reacting by jacking up long term interest rates. …

Greenspan warned the Bernanke Fed to be careful, and not cut rates too aggressively, “because the risk of an inflationary resurgence is greater now than when I was chairman,” he told the Financial Times on Sept 16th, two days before the Fed rate cut . … With booming commodity and stock markets detected in all corners of the earth, and out of control money supply fueling inflation, the global bond vigilantes should be reacting by jacking up long term interest rates. …

The gold stocks , despite gold rising from $250/ oz to $730/oz, have remained in a range when compared to gold . This range is actually lower than the 1980-2000 range, in which gold was in a bear market . You would expect the gold stocks to not only outperform gold … The Federal Reserve’s ½ point rate cut triggered a 27 year high in the price of gold , and all time highs in Oil and Wheat, to name a few other things. Amazingly expectations of inflation are foolishly absent. …

It was a watershed moment with implications far beyond the economy or stock market . I couldn’t believe the Fed would be so breathtakingly reckless as to deliver a big rate cut with the dollar at an all-time low, gold at a quarter-century high, oil at an all-time high, …. I’ve come to believe the overall thrust of the admin’s policy in SW Asia is not simply about oil , or enriching cronies, but fundamentally about stoking chaos and an arc of crisis thruout Eurasia. …

18 rate cut , Rogers warned that such a move would be nothing more than a gift bailout to a couple of hedge funds and some banks, and warned that the United States is on the road to inflation- fed financial ruin if the central bank doesn’t get control of the money supply, and if we hem in the …. guru and Asia expert Jim Rogers said that even if China’s stock market were to plummet, that country’s economy would remain healthy, and would continue to advance unchecked. …