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READER HARRY FORBES WRITES: That was quick! Bloomberg 11/10/2010: ?The Federal Reserve wi?

By Glenn Reynolds

READER HARRY FORBES WRITES:

That was quick!

Bloomberg 11/10/2010:

?The Federal Reserve will purchase $105 billion of Treasuries over the next month as policy makers expand monetary stimulus measures to reduce unemployment and avert deflation.?

WSJ 11/10/2010:

?Commodity Prices Surge: Strong demand for raw materials from emerging markets and a flood of money promised by the U.S. Federal Reserve are pushing commodities prices to new highs.?

Worse yet, it’s sending the price of bacon through the roof.

Related: Stocks Have Collapsed in 2010–When Priced in Wheat. “By pushing the dollar down 15%, the Fed managed to goose the S&P 500 by 19% since June 1. Stated that way, the leap in stocks can be seen as mostly the result of the Fed’s eradication of the dollar’s purchasing power. Priced in wheat, which has soared 71% since June, then the U.S. stock market has woefully underperformed.”

UPDATE: Reader John Spaulding writes:

One thought I had on the price of bacon going up – simple supply and demand.

It is not yet greatly noticed by the mainstream media, but low carb diets are becoming more and more prevalent (though they shy away from the name Atkins). A featured and much desired allowed-food: bacon.

Hmm. Well, bacon is pretty stylish these days.

Full post as published by Instapundit.com on November 10, 2010 (boomark / email).