What in the hell, has you so worked up Eric?

I wish I was asleep, but I'm not sure I can... I may as well blog this.

If I didn't suck at posting these charts, Forcing you to download it and zoom in.(What can you expect from me, Seriously I have no adds.... and to be honest... Totally honest I don't yet value you as a reader yet, To put that kind of energy into it...... I'm very sorry.

You would find out that this chart is; Gold, Euro, and the S&P 500, indexed.

• The S&P is up 3.5% (The S&P is inflation adjusted... so if mainline is 2.5% your up less than you would be up 1%, using mainline inflation)
• The Euro is up 13%(and is not inflation adjusted, ECB inflation is 2-2.5%, so if you "invested" in euros, your up 10.5%)
• gold is up 25.5%(it is inflation adjusted, but there is speculation in it.(there could be speculation in the euro, but that market is so large, there is no more than 2% speculation.)

Ok, so where are we:

In august inflation was roughly 4.5%-8%. The the fed, and it's Printing Press stepped in, and Like magic......

By October inflation was 10-16%. Doubling your inflation with a .5% cut.

After another .25 and another month it's 13.5%-25%(remember the Euro is not inflation adjusted for mainline European inflation.)

Beginning in November, with the promise that the fed was done, we have only seen +/- 1-2% inflation(which is standard inflation by my calculations).

Now to Draw some conclusions....

I believe in standard 7-12% inflation every year... Sorry, it just seems to me like everything is twice as expensive every decade:

1980 a candy bar was a .25,

1990 - .50,

2000 - $1,

2007 - 1.50(Sure it's a bigger candy bar, but if a computer can get faster and
be deflationary, a candy bar can get bigger to feed people with larger BMR.)

So... With standard 9% inflation for 11 months of the year. and what I calculate as 15.5-20.5% Inflation(I pull 5% off of gold to account for speculation)... Those nice .75 rate cuts Cost 6%-11% Inflation.

Now.... Look at that cutting from 5.25-4.5 is a 16% cut(roughly), and the "NEEDED" cut to 3% Fed funds rate is a 33% cut

Solution= if a 16% cut caused and increase of 8% inflation(totaling 18%), Which means somewhere between 40-60% inflation next year.... and that is if they don't cut another .75... to 2.25

What is that 14-30% against the euro (1.70-1.92)

and will it handle that without collapsing.

honestly there are additional variables, like exported inflation, Easing by the ECB....

But also things like, decisions to decoupling from oil, and asia.

It's great, We save Citibank from marking down their assets fifty cents on the dollar, and we get all our assets cut down by .50 on the dollar.

it's times like these that I believe in a massive Cabal, to destroy the middle class.

If they were being reasonable, and holding off... I could trade my way through this... But realize I need to make 30% return on top of 30-40% inflation, that is a 70% return... I've never hit a double in a year.

I should get a job, put my money in Euro's and wait for next fall.

It un-nerved me to realize the S&P wasn't outpacing inflation in march. and it's only gotten worse. 4 percent bond return, at best 10% equities this year(if you got out at the best time).. What a turd of an economy. 5 % GDP My ASS, How about .5%.