Inflation

While statistically hiding for the moment, my gut feeling is that inflation is beginning to rear its ugly head. The positive GDP "growth" of the 2nd half of the year will more likely be Bernanke's permissive monetary policies finally gaining traction in the real economy. For the next year or so, I expect the cost of living for the average American to increase, while employment and wages continue to stagnate. If the banks are able to ramp up a debt bubble again, then the day of reckoning may be pushed further down the road. However, it's possible that the average American is tapped out. If this is the case, once the Federal Reserve withdraws its assistance, things may get really bad again. This is why the Federal Reserve will delay as long as possible in withdrawing the monetary stimulus and will continue to assert that inflation fears are well anchored.