QUANTITATIVE EASING

We're in no danger of hyperinflation because the Fed is not printing money. That's not what the program is all about. Instead it was a gamble meant to lift the prices of stocks and commodities, which it did - but which could now colapse very quickly when QE2 ends.

The dollar hovered near a two-week low against a basket of currencies on Monday and Asian stocks were pinned in tight trading ranges as weak U.S. economic data and fears of a Greek debt default kept many investors on the sidelines.

The Federal Reserve's balance sheet expanded to a record size in the latest week, as the central bank bought more bonds in an effort to support the economy, Fed data released on Thursday showed.

Experts warn that the worsening of the debt crisis means dramatic hike in interest rates, a free fall of the dollar and higher inflation. The negative impact of this scenario will be felt across the world, bedeviling economic recovery everywhere. Critics say the Federal Reserve mandarins are engaging in the outright destruction of the dollar.

Dollar Gold Prices hit a three-week high of $1528 per ounce on Wednesday morning in London, while commodities - like global stock markets - failed to add much to the gains they made Tuesday after Goldman Sachs issued a bullish note on natural resources.

The European Central Bank must guard against steep oil price gains filtering through to broader inflation, an ECB policymaker said on Monday, adding that rising long-term inflation expectations must be taken seriously.

The solid demand for gold is not supported just by private individuals and panicky investors, but countries like China, India and Russia are ramping up investment in the yellow metal.

Renewed worries in the euro-zone over the weekend pulled the euro down to a record low against the Swiss franc, weakened risky assets such as Asian stocks and boosted safe haven investments like U.S. government debt and gold on Monday.

Gold Prices broke back above $1500 on Friday morning, only to fall back to $1488 per ounce in early New York trading.

The Bank of Japan kept monetary policy steady on Friday in a sign that a first-quarter economic slump failed to undermine the central bank's confidence growth will pick up around autumn when the wounds from the devastating earthquake begin to heal.

The dollar looked set to post its first weekly loss in three weeks as investors increased bets on risky assets like equities on expectations the United States would take a long time to raise interest rates after posting weak economic data.

Can the financial markets recover from their recent decline in the face of the end of QE2? We believe that the answer is clearly “yes.”

Spot Gold prices rallied against all major currencies on Wednesday morning, hitting $1491 per ounce and rising 1.2% from yesterday's eight-day low as stock and commodity markets also gained.

Influential investment veteran Jim Rogers said on Tuesday he plans to short U.S. Treasuries, maybe as soon as later in the day, as he expects the end of the Federal Reserve's quantitative easing program to pressure government bonds.

Euro zone inflation rose further above the European Central Bank's target in April, increasing the chances of an interest rate rise in June, despite a weakening of economic sentiment and household demand.

The take away from Bernanke's comments yesterday should allay any fears that the Federal Reserve will be lifting interest rates any time soon.

Prices to Buy Gold rose but silver held flat in Asian and London trade on Wednesday, while the Dollar fell, European equities rose, but peripheral Eurozone debt sank to new record lows.

U.S. stocks index futures rose on Wednesday as investors bet the Federal Reserve would indicate more of the same easy monetary policy and anticipated more forecast-beating earnings.

Solid earnings from Ford, 3M Co and United Parcel Service lifted stocks on Tuesday, but the rally to around three-year highs may face a hurdle as the Federal Reserve begins a policy meeting.

Venezuela’s inflation is at 29 percent and Argentina’s actual inflation (many allege the government data is fraudulent) is north of 20 percent.

Large blue chips, including some consumer-oriented companies, will have to show they can counter sluggish developed economies by leveraging growth in emerging markets and technology -- if Wall Street is to maintain earnings momentum next week.