Monday, June 08, 2009

It's Still a "Bull Market" in Money Creation

The bull market in money creation is still intact!

After a short "correction" a few months ago, the printing presses are revved up and running faster than ever before.

The continued strength in equity and asset prices...much to the surprise of many smart traders...seems to be validating the theory that this bear market rally is on the inflation juice!

I would exercise extreme caution with any short positions, as this "money printing" could very well cause asset prices to go to the moon in nominal terms...even as they are being trashed in real terms!

Remember - inflation is a "hidden tax" on your savings, and one of the preferred techniques used by governments throughout the history of the world to get themselves out of deficit problems.

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