The Fed recklessly abandons their price stability mandate, and this is what it has wrought: Dollar at record lows, oil and gold near all time highs.
It is the first rule of economics, yet so many
idiots pundits cannot seem to to remember it: THERE IS NO FREE LUNCH.
In physics, the corollary is that "every action has an equal and opposite reaction." Why this is too complex for their little frontal lobes is beyond me. It is simple. It is basic. It is easily understood by even supply siders.
Think about all of the brainiacs who have been begging for rate cuts — and from historically moderate rates — over the past 2 years. Be sure to thank them for the reckless disregard for your wallet.
Hey, how’s your core inflation doin’ these days?
UPDATE: November 7, 2007 9:21am
Maybe there’s some hope for the dollar:
Within the Fed, Resistance to Further Rate Cuts http://www.nytimes.com/2007/11/07/business/07fed.html
Oil Rises Above $98 to a Record on Forecasts U.S. Supplies Fell
Grant Smith and Nesa Subrahmaniyan
Bloomberg, Nov. 7 2007c
Dollar Slumps to Record on China’s Plans to Diversify Reserves
Agnes Lovasz and Stanley White
Bloomberg, Nov. 7 2007