...Suddenly and without warning, the pressure is building for MORE spending, BIGGER deficits, and a bigger pile-up of DEBT.
Plus, I’m talking about an enormous amount of money that’s already being created by the world’s central banks right now.
From Tokyo to Brussels and from London to Washington, the world’s governments are printing money like there’s no tomorrow. (See what I wrote about this last week in The Deadliest Vicious Cycle We’ve Ever Seen.)
Everybody knows about it. Everybody’s talking about it. But almost nobody has any idea what to DO about it!
This vast, massive, GLOBAL orgy of money printing — and the explosion in the world’s money supply that it’s creating — IS THE 800-pound gorilla in the room.
Already, that money has helped push U.S. stocks up to unsustainable levels as investors from all over the world pour new money into Wall Street.
Just since the first of this year, the Dow is up nearly 7% — and many household name stocks have fared much better …
Tractor Supply is up 42% … Polaris Industries is up 43% … Red Hat is up 47% … VeriFone Systems is up 50% … and Netflix is up 53%.
Plus Fossil is up 62% … LinkedIn is up 67% … Sears is up 67% … Cobalt Energy is up 73% … and Regeneron Pharmaceuticals is up 128%.
And this may surprise you given the global debt problems, but Bank of America has surged a mind-boggling 50% since January 1.
Now, you have to wonder: Is the company — Bank of America — 50% more valuable than it was just 16 weeks ago?
Of course not!
It’s still choking on toxic assets. It still has a Weiss Financial Strength Rating of just D+ (‘Weak’). Worst of all, the European crisis is erupting again, exposing the bank to major new dangers.
But the trillions of newly created dollars, euros, pounds and yen sloshing around in the U.S. economy have to go somewhere — and for reasons known only to themselves, many investors have decided that BofA stock is where they want to be.
Across America, Asset Inflation Is Beginning
to Pop Up in Some of the Most Unlikely Places
Stocks aren’t the only assets getting inflated by central bank money pumping.
Prices for some collectibles are surging, too. Art and antique auctions that just a few months ago were sparsely attended are suddenly packed to the rafters.
A vinyl banner posing as a work of pop art recently sold at a Woodbury, Connecticut auction for an astounding $15,990!
A friend of mine just finished planning his summer vacation. He says HALF of the places he wanted to stay were already booked solid. Instead of staying at posh resorts and spas, he’s settling for Hampton Inns and Motel 6.
Another friend is looking for a low-priced duplex or condo here in Florida. There are plenty in her price range, but on several occasions, as soon as she found one she liked, it was snapped up by another buyer.
The rental market is also strong in Florida. With a $100,000 property, you can get up to $1,500 per month in rent. That’s $18,000 per year, or an 18% gross return on your money before expenses — nearly six times more than 30-year treasuries are paying.
Everywhere you look, you see prices rising — especially if it’s related to an asset that’s the target of speculation. You see higher prices on clothing, e-books, grapes, fertilizer and health care products.
Why? Fed money printing is creating a temporary “wealth effect.” It’s also making millions worry about how much their money will be worth tomorrow.
Which of these blips are temporary and which are going to gain momentum? Which are just bubbles waiting to pop and which have real substance?...
But it's not cheap. I think the cheapest I've seen it here in Colorado lately is $3.99 for a half gallon on sale at Sprouts. But I will happily pay $5-6 for a gallon of Blue Bell, considering how long it lasts. Compared to one trip to Cold Stone, or even Dairy Queen (which would run anywhere from $10 to $20 for the four of us (2 adults, 2 teens), a $5-6 half gallon of ice cream is a BARGAIN.
