Mosterton

But everyone is devaluing their currency yet we are seeing deflation in commodities. Even if you could magically predict every action by the FED for the next decade, I doubt you could use this info to make successful investments in say, gold or property. The manner in which billions of individuals around the world choose to spend or save their money far exceeds the power of central banks. I could argue that the US is not simply printing away all its financial problems. Rather it is desperate for cash, which is why you get tax hikes in Chicago and the cost of Obamacare.

OK, so let me get this off my chest... I squirm a little every time Peter or Stefan states the Fed's money printing / QE program will lead to the dollar becoming worthless - it's way too simplistic. You have to understand global capital flows for a start - if money is fleeing Europe and its Euro currency, there will be greater demand for US dollars. The Fed can do very little to counteract this. Similarly, hedge funds with massive sums of money have nowhere safer to park money than in the US stock market. In this case it's not money printing causing a direct rise in the stock market, but beacuse it's the only financial system capable and secure enough to transfer massive funds into (and out of) quickly. You can't seriously suggest a US dollar crash without suggesting where, for example, multi-billion pension funds will flow to in a time of global economic uncertainty - Bitcoin? Gold? Chinese Yuan? Euros? I found it a bit frustrating in the recent interview between Stef and Peter they didn't ponder question that despite global QE / money printing programs, why are commodity and supermarket prices falling? OK, that's my rant over. I'd love the FDR team to do a podcast on why the economic trend is currently one of deflation, despite all the central banks printing money. Particularly how factors such as increased taxation and the repayment of debt are deflationary forces.