Dan Amoss has it right: Inflation Up; Stocks Down

Dan Amoss is a gifted analyst that writes for the Agora Financial The Daily Reckoning. He said it well yesterday in his piece entitled Inflation Up; Stocks Down. Here is a portion of that article:

"For the past few years, I've written that we would see radical pro- inflation policies from central banks in response to the bursting credit bubble. And I've expected these policies to result in higher commodity and energy prices, rather than another credit boom.

We're seeing more evidence that basic materials prices are soaring, which should squeeze margins in many manufacturing businesses."

I heard it on CNBC this morning - inflationary threats abound! Jim Chanos of Kynikos Associates was asking openly about Zimbabwe. Do you know what Zimbabwe is famous for? Helicopter money!
What is helicopter money, you may ask? It is exactly what Dan Amoss wrote about above: "radical pro-inflation policies". Buy gold, buy gold, buy gold!