Amid all the Republicans patting themselves on the back and Obama saying it wasn't a repudiation of his policies, the Federal Reserve today began to implement "Quantitative Easing 2"....aka debt monitization. This wonderful slight of hand basically is them printing money out of thin air and then buying T-Bills since there is no longer a market for them (no one wants to buy worthless paper, even the Chinese). Ostensibly this is to "prime the market with liquidity", which in normal human-speak is "pump worthless money into the system in the 'hopes' that it will cause you to spend more". Any first-year economic student (maybe even Canuck) can tell you more money chasing the same amount of goods will cause an increase in prices (that's inflation kids).

So thanks to the brain trust at the Fed, everyone who has a job and doesn't get a cost of living increase every year (pretty much everyone) will have the net effect of getting a 20% pay decrease (you get paid the same but it's actually worth less).

http://news.sky.com/skynews/Home/Bus...01011115792652

The Dow will go up and the politicians will sing, but it will only go up because there is more money, not because any actual values have risen. Meanwhile you and I will pay more for food (Milk is already up 18% this year, wheat futures are up 48.5%) and gas since a bbl of oil is pegged to the dollar. I hear ammo is a pretty good investment at this time...