OMG

Apologies to everyone for the title but I just am flabbergasted at the latest minutes just recently released from the Federal Reserve's last meeting.  These were just released today and really sum up the level of incompetency at the Federal Reserve.  I quote from their minutes: "With longer-term inflation expectations remaining stable and measures of underlying inflation subdued, members anticipated that recent increases in the prices of energy and other commodities would result in only a transitory increase in headline inflation."

TRANSITORY!!  Obviously the buffoons at the Federal Reserve do not drive to work or eat.  Maybe their food is paid for by the treasury who continues to spend our tax dollars on whatever it pleases with little or no regard for the economic consequences.  For those of you who have followed my blog you will know that I believe that inflation is here and it is here to stay until such time as we stop felling trees to print more dollars.

Oil is now well above $100 a barrel and was recently quoted at $108.  Gold has broken to multi-year highs and silver is at multi-decade highs approaching $40 an ounce.  It was only a year ago that oil was below $50 a barrel and gold was below $1,000 an ounce.  Furthermore the grains are spiralling into uncharted territory as corn, wheat and soybeans are all trading near their highs.  Ask any mother at the grocery store and you will be told in no uncertain terms that the price of food is out of control.  This is not a transitory problem but a real problem that will result in much pain to the consumer.

This pain will undermine any form of growth and to me the best option that we have at present is stagflation.  The worst option and, in my opinion the most likely scenario, is that we will enter another recession.  Could this turn into a depression? I believe that there is more than a small probability of this occurring.  Keep your powder dry as the impending outfall will occur in the coming years.  How can it not with such great leaders at the helm?  For those of you into short term trading there is more than a small probability that the market will rally as liquidity is increased (courtesy of the Federal Reserve) and yields on short term treasuries come under pressure.

For those of you willing to stay in cash the options are limited.  Fortunately I have created a short term investment that blows the yields at the treasuries and the banks away.  For more information regarding this product let me know and I will be happy to help you earn some much needed return on your cash balances while limiting your exposure to the risks of a market based on false fundamentals.