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: Mortgage Lender Implode-o-MeterSecret Walmart Survey Shows Inflation Already Here
By Implode-Explode Heavy Industries
A new pricing survey of products sold at the world?s largest retailer showed a 0.6 percent price increase in just the last two months, according to MKM Partners. At that rate, prices would be close to four percent higher a year from now, double the Fed?s mandate...
But since [announcing the latest round of quantitative easing], 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. 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.
We would suggest that Bernanke doesn't want to look at Wal-Mart -- and what inflation might be in the real world. That's because there's no real deflation; the purpose of this whole exercise is to prop up the money center banks that are insolvent, and fund the federal government by monetizing the deficit.
Full post as published by Mortgage Lender Implode-o-Meter on November 13, 2010 (boomark / email).
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