The financial markets are flat almost across the board today, as they digest the staggering jolt that the Fed delivered just 13 hours ago. Gold shows some signs of life, as the precious metal has given back about $10 of its $62 meteoric rise from yesterday. Grains also haven't moved very much from the price levels attained following the global jolt, but soybean futures have also continued to rise modestly higher, rising another 9 cents since the 5 pm evening open. Just about everything is higher -- except the Dollar. Inflation has instantly surged! But following that shock, most things haven't done much. It's as if the shock to the financial markets have left them like a deer in the headlights -- too stunned to move!
Now the huge question becomes this: Will this unprecedented creation of monumental amounts of new money result in controllable inflation, as the Fed hopes, or will it wreak such severe damage to our global monetary system that it will throw the world into devastating havoc and uncontrolled economic calamity? I am certain it will be the latter. But for the moment, we can possibly expect temporary rallies and artificial relief euphoria. But as those ripples begin to move outward, look out!
Now the huge question becomes this: Will this unprecedented creation of monumental amounts of new money result in controllable inflation, as the Fed hopes, or will it wreak such severe damage to our global monetary system that it will throw the world into devastating havoc and uncontrolled economic calamity? I am certain it will be the latter. But for the moment, we can possibly expect temporary rallies and artificial relief euphoria. But as those ripples begin to move outward, look out!
