What would cause widespread asset inflation?
*Dow Theory Letters, by Richard Russell, April 7, 2008:
"An incredible amount of fiat paper (currencies) is being injected
into the world markets. There's also a mind-numbing amount of currency
on the sidelines. There is more than $3.5 trillion parked in money
market funds in the US. Trillions of dollars are now lodged in the
so-called sovereign wealth funds. Arab coffers are bulging with dollars
waiting to be spent. I've yet to see a figure covering all the
currencies that are parked in banks, equity funds, mutual funds,
pension funds, and in private hands. The sum total must be almost
beyond belief.
Ironically, the longer this recession or whatever you want to call it
lasts, the more money will be pumped into both the US and the world
economies. Here in the US it now requires over five dollars in debt to
generate one dollar of GDP. The creation of new money is massive, with
the Fed and world central banks running the printing presses overtime
as they seek to ward off recession and bring back prosperity."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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