I tell you about the fed bomb

I was read what Tom DYSON HAD WROTE ON Dailywelth few days ago : he wrote about the optimism world from his favourite writers, Richard Maybury now this situation to fire bomb at a garden party. It’s like Bernanke left the propane tank open and waiting someone to light a cigarette…

Bernanke created this bomb by dropping interest rate to zero and pumping over trilion freshly money into the economy. It’s mean he want make inflation……..

This money like fuel for fire ball. Fuel need someone to light up cigarette…A massive drop in demand for money is the spark.

When people increase their demand for money, it mean they’re scared and rather cling to their cash than spend it.Because people put their money under mattresses. It can’t circulate in the economy and the banking system can’t build loan top of it. Hoarding money is extremely deflationary…

Two months ago, at the peak of crisis, people were so scared and demand for money was so high, Dyson said.. It smothered Bernanke’s gasoline vapors and kept the bonfire from igniting……

What next….?
If sentiment suddenly improves, that might change. Instead of hoarding their cash, people would spend it. All this new money and cheap credit circulating through the economy, combined with Bernanke’s money supply and emerging-markets stocks….which are very sensitive to inflation … have soared more than 500% in two moths…….

The Dyson way of betting on an inflationary fireball is buying small cap stock in sector slike mining,gambling, emerging markets and construction. Some of these stock fell 90 % or more in the bust and will rise hundred of percent in the rebound if an inflationary fiareball materializes… that all about Dyson way ….. And you?