Wednesday, April 20, 2016

The Fed Is Creating 
An Inflationary Storm
Graham Summers thinks the Federal Reserve is now rapidly losing control .. Core inflation has already broken above 2% despite a complete collapse in commodity prices (the cost of living for many household items) .. "Why does this matter? Because core inflation is ABOVE 2% at a time when commodity prices were FALLING. The Government HAS TO adjust its models to account for this so that ANY RISE in commodity prices will PUSH inflation to the upside. Speaking of which, since bottoming in February, Oil is up over 38%. Industrial metals are up 8%. Put simply, the inflation genie is out of the bottle. Core inflation is already moving higher at a time when prices of most basic goods are at 19-year lows. Any move higher in Oil and other commodities will only PUSH core inflation higher. The Fed is cornered. Inflation is back."
LINK HERE to the commentary

1 comment:

Anonymous said...

You can't have inflation until such time as people have too much money in their pockets. We are being told that a recession (or depression is coming). That will destroy wealth i.e. money in peoples' pockets.