| SUN-TIMES LIBRARY
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.
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