Posted on 06/21/2013 6:19:51 AM PDT by SeekAndFind
Remember back when QE started and we saw charts of high powered money going vertical all over the place and everyone who didn’t understand modern banking said that the reserves would flood out into the economy causing high inflation or even hyperinflation? And do you also remember how most of those same people also said that the only way you’d be able to protect yourself from this hyperinflation was by owning hard assets like gold or silver? Well, the inflation never came.
The most recent reading of 1.7% pretty much proves that we’re much more Japan than we are Weimar (and yes, even independent gauges confirm the low inflation story). And now the portfolio recommendations are falling apart as well….
It’s one thing to be wrong about the way banking works and the way inflation might spread. But most of these people were explicitly recommending a substantial overweight in gold and silver as well. And they’ve been annihilated in recent years.
Gold is down 33% from its 2011 highs. And silver is down a staggering 60% since the time I started referring to it as a bubble. These are massive moves and if you’ve been substantially overweight these metals in your portfolio then you’ve experienced substantial pain based on sheer misunderstandings by people who are posing as experts.
(Excerpt) Read more at businessinsider.com ...
If you’re not including fuel and food, then any measure I’d inflation is useless
They were not wrong. They were early. And that is common.
I have seen nothing in my neck of the woods but prices for essential rising.
And where would we be without the fracking boom. Seriously.
When was the last time this writer went to a grocery store, out of touch much!!!
And a Rick Santelli said Wednesday, it’s the velocity of money that is keeping inflation down, it’s socked away in computers and vaults all over america. If that money ever reaches the consumer we are going to be in real trouble!
Bernanke's triple-digit hyperinflation is just around the corner.
This guy is either an idiot or intentionally a FOS agent of disinformation. Which is it?
Maybe there is no inflation in EBT lines for essential. Guess the D.C. folks have those people’s backs.
When was the last time this author purchased food or gasoline? At the grocery store alone, my purchasing power has decreased by 30% over the last four years.
And the longer it is before it gets here — the worse it will be.
I’ve seen the word “biflation” recently. We actually are in a deflationary economy in general, but the three things which everybody sees right in front of their faces, food, fuel, and medical costs, have been being manipulated.
Its not just food and energy.....its taxes and fees too...all those government fees have gone up..new licenses needed...property taxes up...federal taxes up...state taxes too...Insurance costs going up..
uh-huh...That’s why a box of doughnuts costs $5.40? Milk is more expensive than a gas? Low cut hamburger meat is a luxury for some right now?
Read this for some enlightenment on the subject of inflation:
For that money to reach the consumer, wages will have to go up. With real unemployment and underemployment somewhere north of 13% and Obamacare starting to kick in, I don't see wages increasing anytime soon.
No problem - they just change the definition of “essentials” and voila! no inflation.
Just give it time.
All this QE money is going into the stock market...and what are alot of comapnies doing with this investment money?
Nothing. They’re just holding onto it.
If the economy ever starts to really grow again, commodities from fuel to copper to drywall are going to shoot up in price.
You can’t just throw money into an economy faster than its growth rate, without eventually getting inflation.
Just because gold and silver were in a bubble does not mean that there was no inflation.
Not just foods and gas have gone up. I purchased lumber last year and this year both and the price is up as well for these items.
I believe the statement above about the velocity of money being to low for very high inflation.
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