Bernanke is pushing Gold higher and US Dollar lower - the problem is that rising price of Oil will affect the majority of people. Middle East is exploding and Glen Beck talks about the death of the Western way of life with Oil at 200 $/b and gas at the pump at 10 dollars per gallon. Here could be an exaggeration, but only for a while - we all are going there, but now we can have a choice what to drive in the post carbon world.
"All those QE exercises, which we have discussed above, will unleash a very powerful force of Inflation all around the world. The new most powerful trend in 21st century will be the Energy or lack of it to drive the world and its population forward. All recent progress is based on relatively cheap energy available to us for the last one hundred years. The chart above is from the latest groundbreaking revelations of International Energy Agency - it shows to us that we do not have that luxury any more. Cheap oil is gone - according to the IEA - and "Crude Oil: fields yet to be found - is the politically correct way of saying Oil Shortage. We have now Population Growth multiplied by Peak Oil and Inflation, which will push all prices higher."
Our Catalyst observations on markets were published just a few short months ago, but reality which is unfolding now is even more dramatic and explosive than we have envisioned before. We do not know what people will do when they will realize that they were used and dumped and, maybe, there is no way out any more. One thing is unions striking for bargaining powers and another is hungry mob on the streets and Fuel Riots. There will be attempts to "use the scalpel" and cut some expenses, but we can be almost sure that QE n+1 is coming next.