taojaxx

Inflation Is Going to Be a Major Problem... But Not Today

The Fed has not inflated money supply, it has inflated the monetary base, namely reserves held by commercial banks. As long as these reserves sit on the Fed balance sheet as they do now, money supply is sterilized and creates no inflationary risk. When banks start lending again to earn more than the 25 bp the Fed is currently paying them, then money supply will rise and inflation will be a problem. At that time, the Fed will have plenty of time to mop up liquidity by selling Government bonds (or its own securities, if Congress allows the Fed to issue them).
So, no rush on commodities for inflationary reasons. You might wish to load up on them though, as most don't make the above distinction. As we know, in trading what's important is not what you think, but what the market thinks. Enjoy the commodity party, but stay close to the door as there will be money changing hands when people realize that Marc Faber's certainties ($ debased, buy commodities and a handgun, head for the hills or for China) might change overnight.