Have you seen the Bruce Willis movie, “Die Hard“?
When the police officer starts to drive away, Willis sends him a message…throwing one of the bad guys on the hood of the car.
And Willis yells “Welcome to the party, pal!”
Well, the stock market screamed that to Ben Bernanke this week.
On Tuesday Bernanke seemed optimistic things might improve later this year. But he also mentioned that the falling dollar has contributed to an “unwelcome rise” in inflation.
No kidding.
I wonder how much of the rise in gold, silver, oil and other commodities the past 12 months is directly because of the falling value of the US Dollar?
What do you think?
So…it seems Bernanke may be putting the pieces in place for an eventual rise in rates possibly later this year or early next year” if, as he said this week, “inflation were to flash signs of getting dangerously out of hand.”
Wait.
Did he say “dangerously out of hand?”
Let’s see…oil has gone from $30 to $130.
Gold has gone from $300 to $1000.
Huh?
Oh…welcome to the party. Pal.