1. Fed 50 point "emergency" cut
2. Fed 75 point cut
3. Fed cuts some more (lost count!)
4. Fed gives banks $200 billion to play with
5. Fed is planning on another 75 point cut next week

All this in light that there is serious inflation problems coming this way. Prices for products in EUR are a lot higher than USD, but aside from that, recently inflation for manufacturing input costs was way up. Inflation in the manufacturing center of the world, China, is nearing or surpassed 10%. The answer to all of this? Fsck the long term monetary policy - bail out the banks at all costs.

If this continues, prices for commodity prices are not going to stay where they are, they are just going to go up. Commodities are the ONLY thing that can be perceived as having any real value anymore. Fed just bought $200 billion of "mortgage backed assets". If they instead bought toilet paper, it would actually be a worthwhile investment. I have a feeling that most of the so called "mortgage backed assets" will be worth closer to $200 million.

We are quickly getting into uncharted territory with these cowboys at the helm. The future of USD and the speed and magnitude of its devaluation is currently a big ?