Monday, March 19, 2012

Relax -- there is no inflation


Excerpts from here:

A good friend of mine, who has family living abroad, called me this weekend. One of the first things out of his mouth was about his sister in London and how she was dealing with “terrible inflation.” No doubt he was talking about the spike in gasoline prices that have risen to more than $8 a gallon. (The official inflation rate in the UK is around 3.6%, but I’m sure the numbers over there are as reliable as the inflation numbers in the U.S. where fuel and food are not counted in the so-called “core” inflation.)

What?  The price of food and gas isn't counted?  LMAO! Of course not, after all, they don't affect the economy in any way, do they?

Part of this price spike is due to Iran cutting off crude oil shipments to the EU recently, but part of it is the fact the UK has been engaging in quantitative easing (QE), or money printing, to help its ailing economy and insolvent banks. Just in the last few weeks, it announced another $50 billion in QE. The UK is not alone as most Western countries are engaging in QE to prop up an insolvent system bloated on bad debt.

According to millionaire investor Jim Rogers, the Fed has already started its third round of QE. In an interview on Reuters, last week, Rogers said, “We already have QE3 … Get out the Federal Reserve’s balance sheet. You’ll see that they’ve been pumping up – you can see unadjusted M2 is going through the roof. Look at their balance sheet. … All sorts of assets are suddenly appearing on their balance sheet. Where did they come from? They didn’t come from the Tooth Fairy; they came because they’re in there buying in the market as fast as they can. There IS QE3 already. They don’t call it that but it’s there.”

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