However, the increase in equity prices will be buoyoed by liquidity created out of the "thin air" of money supply increase. The danger remains. If the monetary inflation morphs into real deflation, based on real decrease in consumption, it will not be pretty. Current real inflation in the US (not the "ginned up" numbers published by the Federal Reserve), is running slightly under 6 percent. Did you get a 6% increase in your after tax income this year??

Brian