Another day, another FED cut, another day I shake my head wondering where we are headed. Procter & Gamble and Colgate both announced across the board price increases from 4 to 12% on all kinds of everyday products. Gold crosses $800 bucks before pulling back and oil above $94 and close to $96 in after hours trading. Corn and soybeans (where I have had personal money for awhile now) were both strongly higher and corn is getting back close to $4 bucks a bushel. The dollar continues to deteriorate and the Yuan is picking up speed in appreciation. Why should we not be cutting rates? I mean everything is pointing that we should, right? Instead of getting frustrated you have to ask yourself how to make money with what it seems to be is stupidity. A long time ago I read a piece written by Warren Buffett (I think in the 60s) for like Fortune (may have been some other publication) about inflation and it put the fear of God in me when it comes to inflation. Thinking about it I think I would prefer a deep recession than a world where the United States is experiencing 10% inflation again. Of course I am not a dad who is a blue collar worker and has three kids and a wife to take care of who may lose his job if we entered into a deep recession so maybe from a utilitarian perspective the FED is doing the right thing. I just worry that the tab is just increasing and then when it gets to the point where it can't build anymore and the check finally comes due the pain we all will feel will be massive.
On a brighter note a little less than 2 hours and I am officially running my own hedge fund!! A big Texas Aggie whoop to that.
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