LWW
11-14-2010, 04:00 AM
After the thinking class predicted that increasing the money supply could only ignite inflation, followed by the sheeple class claiming that if Obama says that it won't happen then they believe the power of his word alone will insure that this simply cannot happen ... we now have an observable reality which shows the thinking class to have again been correct and the sheeple class to have been again led to financial slaughter:
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">There might not have been a second round of quantitative easing, if Federal Reserve Chairman Ben Bernanke shopped at Walmart.
A<span style='font-size: 11pt'> new pricing survey of products sold at the world’s largest retailer [WMT 54.13 -0.21 (-0.39%) ] showed a 0.6 percent price increase in just the last two months, according to MKM Partners.</span> <span style='font-size: 14pt'>At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate.</span>
The “inaugural price survey shows a small, but meaningful increase on an 86-item grocery basket,” said Patrick McKeever, MKM Partners analyst, in a note. Most of the items McKeever chose to track were every day items like food and detergent and made by national brands.
On November 3, the Fed announced its much-anticipated purchase of $600 billion in Treasury securities. An effort to keep market rates low since the central bank’s benchmark rate is already at zero. The Federal Open Market Committee’s statement said, <span style='font-size: 11pt'>“Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate.”</span>
<span style='font-size: 14pt'>But since that statement, interest rates have actually gone up, backfiring on a Fed chief who wants his quantitative easing to spark inflation of 2 percent annually. A moderate amount of inflation would be considered good for the economy.</span> <span style='font-size: 17pt'>The problem is that inflation is already running well above a healthy level, investors said, Bernanke is just not looking in the right place, like a Walmart.</span>
<span style='font-size: 11pt'>“I suspect that when the Chairman thinks about reflation he has a difficult time seeing any other asset besides real estate,”</span> said Jim Iuorio of TJM Institutional Services. <span style='font-size: 14pt'>“Somehow the Fed thinks that if its not ‘wage driven’ inflation that it is somehow unimportant. It’s not unimportant to people who see everything they own (homes) going down in value and everything they need (food and energy) going up in price.”</span> ...
<span style='font-size: 11pt'>Prices of cotton, silver wheat, soybeans, corn are all up big this year.</span> <span style='font-size: 17pt'>Cotton futures are up the most, climbing 90 percent so far in 2010. The price of silver is up 63 percent.</span> ...
Bernanke keeping interest rates artificially low is sparking outrage among central bank chiefs around the world, who feel the U.S. is essentially exporting inflation.
China’s CPI surged 4.4% in October, according to figures released Thursday, higher than economists’ expected and up from a 3.6 percent annual reading in the month prior.
Said EmergingMoney.com Founder Tim Seymour, “Bernanke definitely must not shop at WalMart in China.” </div></div>
THE REGIME'S WAR ON PROSPERITY MARCHES ON! (http://www.cnbc.com/id/40135092)
LWW
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">There might not have been a second round of quantitative easing, if Federal Reserve Chairman Ben Bernanke shopped at Walmart.
A<span style='font-size: 11pt'> new pricing survey of products sold at the world’s largest retailer [WMT 54.13 -0.21 (-0.39%) ] showed a 0.6 percent price increase in just the last two months, according to MKM Partners.</span> <span style='font-size: 14pt'>At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate.</span>
The “inaugural price survey shows a small, but meaningful increase on an 86-item grocery basket,” said Patrick McKeever, MKM Partners analyst, in a note. Most of the items McKeever chose to track were every day items like food and detergent and made by national brands.
On November 3, the Fed announced its much-anticipated purchase of $600 billion in Treasury securities. An effort to keep market rates low since the central bank’s benchmark rate is already at zero. The Federal Open Market Committee’s statement said, <span style='font-size: 11pt'>“Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate.”</span>
<span style='font-size: 14pt'>But since that statement, interest rates have actually gone up, backfiring on a Fed chief who wants his quantitative easing to spark inflation of 2 percent annually. A moderate amount of inflation would be considered good for the economy.</span> <span style='font-size: 17pt'>The problem is that inflation is already running well above a healthy level, investors said, Bernanke is just not looking in the right place, like a Walmart.</span>
<span style='font-size: 11pt'>“I suspect that when the Chairman thinks about reflation he has a difficult time seeing any other asset besides real estate,”</span> said Jim Iuorio of TJM Institutional Services. <span style='font-size: 14pt'>“Somehow the Fed thinks that if its not ‘wage driven’ inflation that it is somehow unimportant. It’s not unimportant to people who see everything they own (homes) going down in value and everything they need (food and energy) going up in price.”</span> ...
<span style='font-size: 11pt'>Prices of cotton, silver wheat, soybeans, corn are all up big this year.</span> <span style='font-size: 17pt'>Cotton futures are up the most, climbing 90 percent so far in 2010. The price of silver is up 63 percent.</span> ...
Bernanke keeping interest rates artificially low is sparking outrage among central bank chiefs around the world, who feel the U.S. is essentially exporting inflation.
China’s CPI surged 4.4% in October, according to figures released Thursday, higher than economists’ expected and up from a 3.6 percent annual reading in the month prior.
Said EmergingMoney.com Founder Tim Seymour, “Bernanke definitely must not shop at WalMart in China.” </div></div>
THE REGIME'S WAR ON PROSPERITY MARCHES ON! (http://www.cnbc.com/id/40135092)
LWW