"The banks are sitting on a giant “QE money ball”. Unfortunately, the money ball has been deflationary because it just sat there in the banks, like coins in a piggy bank. I believe Janet Yellen’s main focus since taking the Fed Chair has been “monetizing” that money ball, by adding velocity to it. "

"While I see Janet in a very strong position now, confident and acting with surgical precision to ramp up inflation, that’s not the case for the US government. It might become a bit desperate, as Janet begins to hike rates. Former Fed Chair Alan Greenspan has made numerous public statements that the debt-soaked US government has become too big a part of the economy. "

"Is anybody really listening to Alan? I don’t think so, and they will pay a price for that. Higher rates will put pressure on the government to get its financial house in order. Unfortunately, the US government is likely to react to higher inflation, simply by aggressively hiking government worker wages. In my professional opinion, a stock market tumble linked to shocking reflation could happen as early as October of this year."

Extracts with emphasis added, from...

http://www.321gold.com/editorials/thomson_s/thomson_s_061615.html

My comment? A major economy can not long exist based on service sector jobs (and civil service jobs). Economic, political and military power shifts to those countries that produce things, which is among the reasons why China is buying up natural resources around the globe, and why our currency will weaken.