Biotech Values

[zipjet]

In my view all QEII will do is force our middle-class and working-class Americans into a a situation where they'll pay more and more for energy, food and necessities

That is true of crude derivatives but not NG, coal or nuclear power. It is not true of food which by value runs around 6% of food by cost. Not at all sure on "necessities" whatever those are.

But QE2 will have three major effects, inflating asset prices, lowering interest rates and lowering the trade deficit (exports up and imports down).

Each of those will be positives for US employment. But the head wind will be fiscal drags as governments try to reduce the deficits.

Netting it all out, I would guess that unemployment will go over 10% and end 2011 near 10%.

ij