This is just the beginning folks. Helicopter Ben has just barely dipped into his bag of tricks. He will continue printing and printing and printing even if he encounters the types of headwinds encountered in 1930′s. Needless to say, expanding the Fed’s balance sheet is inflationary. The Federal Reserve chairman “Helicopter Ben” is employing the remedy he has long recommended, that a determined central banker can always reflate. Helicopter Ben obviously does not have a working model that is even close to working so he and his fellow morons are making this all up as they go!
In late 2008 the Federal Reserve turned up the printing presses on HIGH! Congressman Ron Paul, an advocate for a Gold-backed currency, wrote:
“The updated total bailout commitments add up to over $8 trillion now. This translates into a monetary base increase of 75 percent over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere – it is created from thin air, and devalues every dollar in circulation.”
Remember, it was inflation. Oh yes, year after year of hyperinflation in the 1970s that was the primary force of devaluing our USD and driving up the price of Gold. Now is the time to buy Gold as the ultimate hedge against the coming years of runaway inflation/hyperinflation. The 1000 POG number might be tough to bust through as it is a natural sell point for many. BUT, once we pull back I’d be buying the dip for a 12-24 month horizon and Gold to go to 1500.
Good Luck
You need to get off the gas. We won’t see any inflation for at least 5 years!
“We won’t see ANY inflation for at least 5 years”
Spoken like a true rookie in the markets.
WASHINGTON (AP)Thursday February 19, 2009, — Inflation at the wholesale level surged unexpectedly in January, reflecting sharply higher prices for gasoline and other energy products.
The Labor Department said Thursday that wholesale prices increased by 0.8 percent last month, the biggest gain since last July and well above the 0.2 percent increase that economists had expected.
The acceleration was led by a 3.7 percent surge in energy prices with gasoline prices jumping by 15 percent, the biggest gain in 14 months.