Weather Updates

Stocks on rise, so is inflation



storyidforme: 3842665
tmspicid: 918346
fileheaderid: 635420

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.

© 2014 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit To order a reprint of this article, click here.