|The above chart shows the more than tripling of the monetary base between 2008 – Present.|
We aren’t seeing dramatic signs of impending bubbles yet, but the economic outlook is improving. Just this week McDonald’s announced a record annual turnover for 2011. McDonald’s has performed well throughout the recession, but the latest numbers are turning heads. There’s even good economic news coming out of debt ridden California. Unemployment in the golden state has reached it’s lowest level in 3 years. As unemployment numbers drop around the country and more people return to work which sector of the economy will attract dollars? For obvious reasons, many people would love to see the value return to their house or 401K. Unfortunately, you cannot pick and choose where inflation will rear its head. There is a very good chance that we could see massive inflation in the commodity and energy markets in the coming months. If you think the housing crash was painful, you ain’t seen nothing yet.