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<p>[QUOTE=&quot;Bluesboy65, post: 1138410, member: 23329&quot;]Dallas Fed President Richard Fisher said on Friday that “we did our job as a central bank. We may have overdone our job. We have done enough. We are at risk of doing too much. I don&#039;t believe we will&quot;.&nbsp; Fisher does not want to signal a rush for the exit but made his point.&nbsp; He went on to say that we have other structural issues that additional stimulus may indeed make worse and that he would not support additional accommodation.</p><p><br /></p><p>According to the Bureau of Labor Statistics, <b>Core</b> CPI (inflation) in February was 1.09% from the previous February and this is a 15% increase from January’s year over year increase of .95%.&nbsp; At this rate of increase the Fed’s target of 1.5%-2.0% will be exceeded by late June.</p><p><br /></p><p>Since QE2 (Sep), the DOW has risen from $10K to over $12K, an increase of just over 20% while unemployment has bounced around in the 9% range (excluding discouraged workers).&nbsp; There is no doubt that QE2 has had a positive impact on financial markets, and perhaps in halting a steeper slide in unemployment.&nbsp; However, considering some of these key indicators and considering the fact that these actions have pushed the debt over $14 trillion it is clear we cannot continue on this path for ever.&nbsp; In fact it seems we&#039;re digging a pretty big hole and I haven&#039;t even factored in the impact of unfunded liabilities.</p><p><br /></p><p>I think this is why the US and many other nations are driving their currency lower (they do this to pay back debt with cheaper dollars) as a de facto, if not official, policy.&nbsp; In this environment, people and governments are looking for a safe haven to store/preserve their wealth.&nbsp; There are a range of options here including other strong currencies, commodities, precious metals and &quot;safe&quot; sovereign debt.&nbsp; I think PM’s will continue to&nbsp; do well in an environment where the US and other leading economies pursue currency devaluation as a means of “growing” their industry.</p><p><br /></p><p>Regards,</p><p><br /></p><p>Bluesboy65[/QUOTE]</p><p><br /></p>

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