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Stocks on rise, so is inflation

| SUN-TIMES LIBRARY

| SUN-TIMES LIBRARY

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Updated: May 3, 2013 12:13PM



What are the markets telling you when stocks make new highs and gold soars $55 an ounce to $1,393-

On Thursday, the Dow Jones industrial average rose 219.71 points, 2 percent, to close at 11,434.84 -- a two-year high.

The markets are saying that the "smart money" is betting that inflation is on the way -- in spite of the Fed's worry about a slowing economy, and in spite of weak jobs numbers, and in spite of the continued housing slump.

Many people think that inflation is an economic force when it really is a monetary problem: too much money being created. And the Fed's announcement that it plans to create another 600 billion U.S. dollars, out of thin air, has unleashed the inflation fears.

Click here to continue reading Terry Savage's column.



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