|
The short answer to that question is YES! The first place you expect to see it is in the commodities area. Particularly in the agricultural commodities and in the precious metals which are the most sensitive commodities. It is not because of the weather. Politicians always want to blame it on other things like the weather or speculators or greedy corporations. The truth is that is has nothing to do with those factors. It is all because of money supply. It is due to quantitative easing. It is because of stimulus. This is a consequence of what the government has done to try and stimulate the economy. By running huge deficits and printing money to buy up treasuries. That expands the money supply and diminishes the value of money that means prices have to rise and that is exactly what is happening at the start of 2011. They governments keep claiming that we are in a period of economic growth. But if you are in economic growth, that means inflation will be less. So it is proof they are lying to us. Just think back, when has the government ever told the truth. When economies are growing they are growing their production. They are producing more goods, and that puts downward pressure on prices. Do you see this happening right now at the start of 2011? The real reason we have inflation, is because the governments are inflating. Inflation literally means to expand. And what is expanding is the money supply. It is expanding all over the world. As money loses value, prices have to rise. That is is, the rest is just government propaganda, to divert our attention to what is really happening out there in the real economies. Eventually we are going to be the ones that have to pay for all the government spending, through higher prices. So when you go to the gas station and fill up, and see how expensive it is. When you go to the supermarket and see how expensive it is to buy food, the increase is your share of the cost of the stimulus. This is what it is costing you, because Barak Obama and congress are not cutting spending. They are not raising other taxes so we are paying through government and a debased standard of living. With the problems seen in china at the moment, they will soon start to reign in inflation. But that will unleash an inflationary nightmare in the US. Consumer prices and interest rates are going to skyrocket. The problem here is that if the Chinese dollar increases the US dollar must decreases and Americans will experience higher prices, falling purchasing power and a lower standard of living to go along with it.
Want a looking glass into the future? World Recognized for their past trend forecasts and accurate stock market calls, Forecast For Tomorrow provides regular updates to help you make BIG profits in any economic climate. Get tomorrow's news today, Visit http://www.forecastfortomorrow.com
|
