The plan is to inflate away the US debt through money creation. The Government knows there is now no way to cut spending, or raise taxes, enough to get the huge National debt under control. Inflating the debt away is now the only practical political option. The resulting weak dollar will also make American exports cheaper. That, as we see today with the Dow soaring as the dollar drops against the euro, will pump up the stock market, as exporters can sell more abroad.
Trying to balance the US budget now by cutting spending, will just about guarantee a worldwide depression.
WELL WORTH YOUR TIME & EFFORT TV ALERT, SEE HOW IT’S DONE
If you want to see one of the best TV interviews ever done, with billionaire hedge fund manager David Tepper, go to http://www.cnbc.com.us and click on ‘Squawk Box’ for Friday, 24 September. This one interview helped pump up the market! He explains how he got to be one of the world’s richest men, and why the stock market will go up in the short term – money printing. He says it will either go up naturally, or the Fed WILL QE it up, and soon. Notice how you don’t need to use dangerous leverage to get very rich. Too bad the bankers didn’t do that.
My 11,800 year end Dow is looking like a sure thing. Next year 13,500? I expect an inflationary boom until peak oil strikes, then look out.

@Bill That analysis is surprisingly close to how I see things happening as well. The problem is that inflating debt away is a game that can never be slowed or stopped without dire consequences. Either way, dire consequences.

Bill S., I don’t fundamentally disagree with you at all. However, if the Dow does top 13,500 next year, just what might the corresponding price of gold and silver be at the same time?

Thanks, but no thanks; the US stock market is a (manipulated) toxic waste dump as far as I’m concerned, and I wouldn’t touch it with a 10 mile-long pole.