“While the federal government would have us believe the numbers are rather tame, our own personal gauge leads us to believe inflation is running between 5 percent to 6 percent annually,” wrote Alan Newman in his latest Crosscurrents newsletter that refers to Williams’ statistics.
More here. The Government would like us to believe? The Government is run by liberals....Liberals lie!
"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."
"The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in U.S. consumer price inflation -- an outlook consistent with the projections of both FOMC participants and most private forecasters,” Bernanke told lawmakers. “That said, sustained rises in the prices of oil or other commodities would represent a threat both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored. .
What the hell else is there besides food and energy to make prices rise?
Today, the Federal Reserve’s statement was virtually identical to the statement of the last meeting on November 3. Yet since the last meeting treasury rates have exploded to the upside despite the Fed’s purchases known as "quantitative easing."
The Fed’s direct action in the Treasury market has been nothing short of historic. The logic of the Fed’s various purchase programs was “sold” to the marketplace as a means to keep mortgage and treasury rates low…..or at least well-behaved and to create some “controlled” inflation.
Yet, since the last meeting 10-year rates are up close to 100 basis points! I am not sure what amazes me more — the fact that the Fed didn’t even MENTION the rate rise in today’s statement, or that many believe the various purchase plans have been “successful.”
How can a program that was designed to drive rates lower be deemed a success if rates are now sharply higher? Why is there so little clarity from an entity that is now among the largest holders of Treasury securities?
The new Fed Watcher might have something to say about this.......
My conclusion is that the goal of Chairman Bernanke and the Federal Open Market Committee was to monetize the growing U.S. debt and generate future inflation. On the last score….generating inflation….I think time will prove the Fed highly successful.
I am quite sure he is right on the inflation score. Its coming, and it will not be pretty........
