I just had to cut and paste the following graphic ( my apologies if proper credit is not given) as it best illustrates the significance and implications of the Fed’s QE money printing bonanza. Please take a good look at this – a real good look. Then consider the arguement of ”inflation vs deflation” moving forward. I would be hard pressed to entertain idea of the dollar doing anything other than “going down” over the first half of of 2013 – minimum.
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. (thanks wikipedia) Trading it however – will most certainly not be as cut and dry.
