Richard Russell – I See Catastrophic Insane Bubbles Everywhere
November 7, 2012
Today the Godfather of newsletter writers, Richard Russell, has written a very serious piece discussing the fact that we are seeing insane bubbles in many different areas. But Russell also covers the state of the gold market and what investors should be doing with their gold.
Here are Russell’s thoughts in his latest note to subscribers: “What’s Bernanke doing for the dollar – or to the dollar? By creating multi-millions of additional dollars, the Bernanke Fed has knocked the dollar down. But due to weakness in other major currencies, the dollar (which is now oversold) has rallied over the last day or so.”
Richard Russell continues:
“Bernanke insists that his “QE3 to infinity” is not bringing in inflation. In proof, the Fed uses its ridiculous inflation measure which leaves out the rising costs of food and energy. But what Bernanke doesn’t talk about is inflation in commodities and tangibles.
Meanwhile, the price of art, medicine, college tuition and food is going through the roof. In fact, we are seeing bubbles in a great many areas. The yield on the Dow is 2.56%, far below the classic danger level which is 3.5%. According to the yield cycle, the stock market is in a dangerous bubble. And with bond yields tanking at unbelievable low rates, the bond market is also in a bubble.