“In the old days … the Fed controlled the federal funds rate with open market operations,” Antulio Bomfim, a former Fed economist now with Macroeconomic Advisors LLC in Washington told Reuters. “Now, at least in this period when reserves are over-abundant, the way the Fed hopes to raise the federal funds rate will be primarily by raising the interest rate it pays on reserves.”

Adam Lass says the US economy looks “dreadful” in the short term. And it faces long-term monetary ruin. But somewhere in between, he expects a new bubble to form. One that will make some investors huge profits. To survive until then, Adam says you must use put options on “deadbeats” like Kohls (NYSE:KSS) to hedge long positions on proven “survivors” like Macy’s (NYSE:M).

So, without further ado, let’s jump into the problem with the Euro. Back in May 2007, we wrote a piece entitled “Part 2-So What Should We Worry About“.

When I look at the policies that central banks are adopting today, everywhere, I see an inflationary epidemic that is feeding on itself and confirming the bull market in gold.