Are you getting worried about inflation? It seems amazing to me that there is so little talk about inflation and the long bonds are rallying. Meanwhile, you have oil at $108 WITHOUT ANY DISRUPTIONS OF SUPPLY. Can you imagine if we get a supply disruption? It seems clearer and clearer to me that oil is on its way to $200 if not $400.

Look at all the articles I've posted over the last couple of days on ag inflation and hoarding in 3rd world countries.

Inflation is happening throughout the world on a massive scale. Friends in Nicaragua report that prices are going up on a nearly weekly basis now. From what I read, other countries are seeing lots of inflation. Imports to the U.S. seem to be slowing dramatically, which means that consumption will have to slow down faster than supply, or else we will see prices go up as well. Exports are booming (especially ag exports) so that increases the pressure on the need for consumption to fall domestically to prevent price increases.

There are more and more strikes going on worldwide as workers demand raises to help with higher costs. Companies will have to start passing on these higher costs. Meanwhile, lots of industries are cutting back supply (airlines, gasoline refiners, etc.) in order to maintain profitability. This will only add to the supply issues.

Yet the Fed is just fanning the flames.

The mentality has not moved to hoarding yet. Investors are starting to do it with oil and some other futures. But that is about it.

I fear that the shift to hoarding is about to begin and the consequences could be very dangerous. The Fed is playing with fire here.