$10/Gallon Gasoline Is a Cinch With Ever More Q.E.

What St. Louis Fed president Bullard calls "economy" is a den of thieves.

I opened for my beloved,
But my beloved had turned away and was gone.
—Song of Solomon

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Meet inflationist extraordinare, St. Louis Fed president James Bullard, whose credibility likely will be ruined not long after the coming mad chase for performance levels the bond market, discrediting it as a safe haven (and the Fed as a sane regulator) for many years to come.




Not one word about the growing risk continued "quantitative easing" places on the exchange rate value of the U.S. dollar. Scandalous! Simply scandalous.

There might be no such thing as a "sure thing," but the bond market is as sure a bet to be discredited as might ever have existed. Subsequently, then — with all forms of paper assets being shunned — the Fed's quantitative easing all too likely will accelerate the bid for "things," such as crude oil and gasoline, grains and meat, etc, etc, etc. Just how far and fast prices might rise in a hyperinflationary explosion is difficult to say. Already there is more than enough liquidity to create a shock wave of unimaginable proportion (look how this liquidity has affected the bond market ... this in wait, that the securitization market might be restarted ... which is not going to happen in our lifetime). Bullard would make only more liquidity available. Hardly sane policy. Yet it scarcely masks the fact that, the Fed's quantitative easing amounts to nothing more than a protection racket of financial enterprises many times over bankrupt. The Fed being at the center of this means this institution, too, soon must be restructured. Indeed, the sooner the better.

—Tom Chechatka