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Four Reasons Hyperinflation Hasn’t Hit the US... Yet
Keith Fitz-Gerald
Minyanville.com
Thursday, Nov 5th, 2009
Everything we know about classic economic theory
suggests the US economy should be experiencing Zimbabwe-like
hyperinflation right now, thanks to the nearly $2.2 trillion
the US Federal Reserve has pumped into the system.
But we’re not... yet.
Classic economic theory says that money supply can be used
to stimulate the economy and our central bankers seem to agree.
That’s why they’ve pumped more than $1 trillion
dollars into the economy, engineered countless bailout bonanzas
for zombie institutions, put Detroit on life support, and delivered
a bunch of financial Band-Aids to the trauma ward -- all in
a desperate bid to make Americans feel better about the global
financial crisis.
To their way of thinking, the trillions of dollars have been
a success. That’s why any meeting of the Group of Eight
nations looks more like a mutual affection society with central
bankers eager to claim credit and backslap each other in congratulations
for having avoided the “Great Depression II.”
But by taking the Federal balance sheet to more than $2 trillion
from $928 billion 2008, they’ve created a situation that
should have resulted in an epic inflationary spike to accompany
the 137% increase in liabilities.
Yet that hasn’t quite happened.
Core inflation -- which denotes consumer prices without food
and energy costs -- has actually decreased from 2.5% in 2008
to 1.5% presently. And that has many investors who have heard
the siren call of the doom, gloom, and boom crowd wondering
if they’re worried about nothing.
So what gives?
Full
article here
"When the people find they can vote themselves
money, that will herald the end of the republic."
- Fall Of The Republic - Buy
the DVD here
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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