Yesterday morning, nothing had changed. The markets were quiet after the intense political changes across America.
Today, it's a different world.
All of us have lost on this trade. Through the desperate actions of the US Federal Reserve, governments and private citizens of nearly every country are being adversely affected. It's a sad day.
The prices you and I pay for goods and services are being deliberately manipulated in a desperate attempt to create inflation which will, in theory, cause us to alter our purchasing behavior from conservation to risk taking which will, in theory, grow the economy, jobs, and create a wealth effect.
QE2 will do just the opposite. Perversely, it will likely be highly deflationary. Prices will likely rise, people will conserve more, and governments will rightly protect their interests with currency controls and other protectionist measures. It will end badly.
Then it will truly be a different world.
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