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Get Ready for a Fed Induced Period of Inflation

Just to clarify, this article isn't denying the present deflation. It's a forward looking article that looks to the coming hyper inflation that is to come.

While I may write about things in the present I really like to take things a step further into how it all translates into the future, for that's where the money is made.

Thank you guys for taking so much time to read my posts. I appreciate that greatly.

To the point of "do I think that commodities will cease to be traded in dollars"...no I don't think that's in the near term time horizon.

Could there come a day where this happens? Certainly. However, that day is further off than many think.

While the dollar has a ton of flaws, it's still the most liquid currency in the world (at this point). Therefore, countries are still fine with trading these commodities in dollars. But, there could come a day when the dollar is not even the world's reserve currency anymore too...this happened to Britain. I don't see why it couldn't eventually happen to us as well.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

Glad you enjoyed the commentary, guys. Was glad I was able to clarify my points as well.

I thank all of you for reading my posts. I appreciate that. Visit my website if you get a chance sometime too.

Looking forward to many more articles on Seeking Alpha. I love this site.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

Historically, stocks start to recover when unemployment is at its highest. Why? The lead time that stocks have over the actual economic cycle.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

Things are always still bad economically while stocks start to recover. This is due to markets anticipating recoveries about 3-6 months in advance of the trough in the economic cycle.

They want to grab up value before it becomes obvious to everyone. Some think that stocks rise as the economy rises, but that's not how it happens. The rise in stocks precedes the rise of the economy (in anticipation of a recovery).

Here's a good example of this: images.google.com/imgr...

See the stock market move in red and the economic move (cycle) in green.

So what I'm talking about is the stock cycle that leads the economic cycle.

Hope that helps in clarifying. This is why there will still be bad news surfacing yet stocks eventually rallying. That always leaves people scratching their heads. However. once they see how the market cycles coincide with economic cycles, it solves the mystery.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

It wasn't by chance. It was by macro analysis. Looking at the whole pie and not just one piece.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

Great analysis is never by chance.