For weeks at ContrarianProfits.com we’ve been warning that the Fed-inspired optimism on Wall Street would have to eventually have to face the reality of Corporate America’s earnings.

And today reality has bitten hard. US stocks fell with a loud thud following missed earnings from industrial behemoth General Electric, whose dismal earnings report casting a gloomy light on upcoming profit reports.

According to Dow Jones MarketWatch, the Dow Jones industrials shed 148.59 points to 12,433.39, with 25 of its 30 components trading in the red.

The GE reported 6% drop in 1Q net profit.

Tumbling stocks isn’t investors only worry. Inflation and the weakening dollar are also threat invetors’ wealth.

“The only way for the United States and other economies to salvage their financial systems is to print credit, or aggressively grow their money-supply,” says Eric Roseman in the Offshore A-Letter.

“Over the next 12 months, I have no doubt that the Fed, ECB and other central banks will print credit like there’s no tomorrow. Money-supply must boom and inflation must prevail over deflation.

“The central bankers talk a tough game on inflation, yet history shows they have a pathetic scorecard. Fiat money has severely crimped our purchasing power since the demise of the gold standard under Nixon in 1971.”