The FOMC meets this week. Bloomberg gathers up some chatter on what Helicopter Ben might have to do next:
Hyperinflation may be here sooner than even the most paranoid goldbugs anticipate. Further expansions in the Fed's balance sheet may very well stave off a deflationary depression, and the price we will pay at some point is massive inflation. Any equity market gains in that kind of environment would be nominal rather than real, so a Japan-style lost decade or two for stock market investors would be unavoidable.
Nota bene: Anthony J. Alfidi is long IAU (with short covered puts) and GDX (with covered calls).
Chairman Ben S. Bernanke and Federal Reserve policy makers may have to ramp up their purchases of mortgage securities and other assets after the economy and job market deteriorated further since they last met.
Hyperinflation may be here sooner than even the most paranoid goldbugs anticipate. Further expansions in the Fed's balance sheet may very well stave off a deflationary depression, and the price we will pay at some point is massive inflation. Any equity market gains in that kind of environment would be nominal rather than real, so a Japan-style lost decade or two for stock market investors would be unavoidable.
Nota bene: Anthony J. Alfidi is long IAU (with short covered puts) and GDX (with covered calls).
