The fed is between a rock and a hard place:

– no more QE: the stock market will crash, no easy credit, brakes on economy
– continue QE: rising inflation, real wages dropping, angry voters.

Furthermore the Administration is not supposed to be part of the monetary policy but Obama will politically pay for the decision either way.

What should we do:
– keep your gas tanks full (I filled the RV in January, $2.90/gallon, today driving home it is $3.80/gallon — $60 savings
– keep your pantry full — anything you buy today is cheaper than tomorrow
– understand the stock market is like going to Vegas. Best trading option is probably futures contracts
– pay down debt that costs more than 6%-8% to improve cash flow. Anything else is about to become cheap money. Free up the expensive money to invest in CD’s, dividend paying accounts when interest rates go back to 10-12-14%
– Remember, as interest rates go up bond prices go down. why do you think PIMCO sold ALL of their treasury bonds?
– Remember the government has $4 trillion in short-term treasuries coming due in the next 18 months