PTAUAG

Wednesday Outlook: Commodities, Emerging Markets

This trading Treasuries for junk is diluting the value of Treasuries, which the US Government must sell every month. The upward pressure on inflation by the nationalization of this junk will be felt quickly. Look for Grains, Fuels, and Gold to continue their march up. Since the U.S. middle class is now fearful of being unemployed wages will not keep up; look for a quickening Bankruptcy rate. Which means more home foreclosures, which means more Fed purchases of junk. So we descend to emerging market standard of living with each turn of the screw. I wonder if this isn't the goal?