Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

Welcome to the "Wolf Creek Pass" School of Monetary Policy

I don’t know if you folks remember that hit ditty: a humorous tune about two truckers attempting to manhandle an out-of-control 1948 Peterbilt down the “other side” of Wolf Creek Pass – a death-taunting section of U.S. Highway 160 where the elevation drops a hefty 5,000 feet in a relatively short distance.

The song’s two characters – a truck driver named Earl and his brother, who’s his partner as well as the song’s narrator – are taking a flatbed load of chickens on a speedy trip down this winding, two-lane Colorado highway. After the narrator gives Earl the above-mentioned warning, the ancient semi’s brakes fail.

From there on down, the narrator tells us that the brothers’ trip “just wasn’t real pretty.” The truck careened around hairpins and switchbacks, and then raced at an uncontrolled 110 mph toward a tunnel with “clearance to the 12-foot line” – with chicken crates sadly “stacked to 13-9.”

The drivers and the runaway Peterbilt “went down and around and around and down ’til we run outta ground at the edge of town… and bashed into the side of the feed store – in downtown Pagosa Springs.”

Believe it or not, I started thinking about this funny old country tune the other night – right after I’d read a piece about QE3 and the U.S. Federal Reserve.

As zany as it first sounds, the parallels are striking.

  • Featured Story

    How to Beat High Gas Prices

    Are high gas prices giving you road rage? Well, wait "til you see what's coming.

    Prices at the pump currently average $3.89 for a gallon of regular unleaded, up 30 cents in the last month.

    But it's already over $4.00 per gallon in many cities - more than double the $1.85 a gallon that prevailed when President Barack Obama took office.

    And most analysts are predicting gas prices will go much higher.

    The national average gas price should reach $4.25 by the end of April as refiners shift over to more expensive summer blends, Tom Kloza of the Oil Price Information Service told the Wall Street Journal.

    As prices shoot through the previous high-water mark of $4.11 in 2008, filling your tank could soon hit you for $75-$90.

    And the sky's the limit if Iran decides to block the Strait of Hormuz in retaliation for economic sanctions that go into effect in June.

    To continue reading, please click here...
    Read More...
  • why are gas prices so high