Metals & Currencies - Metals and Currencies

We live in a world with two economic circuits in which capital flows.

Firstly, capital markets are awash with liquidity-- this is where Bernanke has pumped in trillions and it has pumped up commodities and stocks. Commodities however have retained more of the inflationary pressure from this printing spree as investors see these 'hard assets' as safer bets than corporations, which in recent time operate as quasi-financial outfits just as susceptible to the moral hazard that has permeated the financial sector.

The middle class and small business are tight, banks have lost faith in American industry and the American middle class this is evident in the tight lending. This along with the outsourcing of labor to the third world has left America’s middle class largely dependent on debt that is vanishing as we speak. So we are seeing a serious bout of stagflation that should continue in the near future.

Stock


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