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My fed prediction

April 29, 2011

I think that with the dollar tanking and everything skyrocketing (stocks & commods) that the fed is going to get increased political pressure particularly from other countries to stop QE. Don’t forget, inflation is one major problem but the other is currency valuation. The dollar dying is making exports much less competitive and hurting other economies.

If the fed pauses for a while before announcing QE3 the market will tank an people will get pissed. He will then earn much more political capital and backing for QE3.

Accordingly I am going to lighten up a bit on silver and gold with an eye towards the end of June – hopefully there will be some discounts.

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