The Confidence Game – Jim Puplava

Alright, now that the Fed has gotten everyone’s attention what happens next? Will the Fed begin raising interest rates aggressively abandoning its slow and easy approach to raising interest rates, or is this blustering on part of the Fed? The markets have been caught off guard and are now reacting to what was obvious all along. Inflation is on the rise and it should not surprise anyone, but it did. Certainly higher energy prices are a factor. Energy prices impact everything from the cost of factory output and the price of consumer goods, to the cost of food.

Major financial upheaval is on its way. A few are forecasting an “April Avalanche” for the financial markets. One market seer, Woody Dorsey, sees an April avalanche for stocks into mid to late April to be followed by a May rally. Dorsey also sees a new high for oil in April. The myth of a decline in demand that will accompany a slowdown in China’s economy is about to give way to hysteria in the oil markets.