Pundits are wondering just how long the FED will stay at zero interest rates. We are starting to see articles that printing this many dollars will eventually result in some inflation.
Other FED pundits, weak dollar, who cares say others.
One analyst points out that asset prices will continue to rise as long as interest rates are set to zero in this country. The FED wants asset inflation so bingo the stock market is up.
Bottom line is this-the weak dollar supposedly bolsters our exports by making them cheaper. But as noted in a previous post, the Chinese are attempting to do the same thing by keeping their yuan cheap. As we have noted commercial real estate is weaker all the time, and regional bank stocks are weakening as we noted earlier this week. All these trillions of dollars of stimulus have ended up in the stock market where those bucks are clearly not creating any jobs, hence unemployment continues to climb. Eventually inflation, probably this spring, will surface. Then we will no doubt face a 1970s stagflation of higher inflation and continued unemployment. I suspect that will hit just in time for the November 2010 elections.
Professor Elam 
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