The Real Inflation Numbers

By: Elizabeth Kraus

If you read your headline that reads, “According to the US Government, there is no inflation,” the lead line should read: “The US Government, which has substantial amounts of debt tied to the CPI rate, and which is known to lie about this as well as numerous other factors affecting the public, has calculated the CPI without regard to what is really going on in the world.” Cause indeed, the closing line should read: “They think you are stupid.” (This should always be your closing line when mentioning the government,) says Henry Blodget this morning. Gary Shilling adding, that house prices will drop another 20%.

If the government has brought us to this point, thinking we are all stupid, and we’ll buy into it, they are not cognizant of a disaster, until the disaster occurs. The Middle Western farmer had a phrase for it: “Lock the door after the horse is stolen.” So, perhaps for those still unaware, it will take disaster to educate one’s existence through a disaster–an education that usually comes with pain, impact, and punishment—starting with inflation—that is about to hit the fan!

No Inflation, you say?

When I see food packages shrinking and I am paying more per pound for everything, can I just call that a result of hedonics, and pretend my dollar is still as strong as it was? Should I just disregard the fact that today’s dollar is worth less than ten cents compared to the 1950 dollar, in order to believe that there is no inflation? If there is no inflation, how are the Wall Street guys getting record bonuses, when, in fact, a vast majority of listed companies are shrinking in the US rather than growing?

Still no inflation, you say?

Latest real prices: “Post Raisin Bran goes from 2.50 to 3.00 per box at Walmart. My favorite yogurt goes from .50 to .98 each at Walmart. Cherry tomatoes go from 4.98 to 5.98 per package. Walnuts go from 9.98 to 13.98 per bag at Sam’s,” writes a farmer in Texas. Should I go on?

While Bernanke is fighting deflation, but the inflation threat looms large over global markets, last week, China expressed sincere worries its inflation situation was getting out of control, and it would need to take steps to tighten. “The Shanghai Composite plummeted the next day.

But, hey! If there is no inflation! Pizza for everyone! Oh yeah, I need a job before I can pay for them…

Now Is The Time To Value Gold More Due To Inflation

“Societe Generale have put together a report on how to value gold, in comparison with a variety of other assets and market influencers. The breakdown looks at the relationship between gold and multiple currencies, between gold and dollar debasement, gold and inflation, and gold and the bond market.” For anyone interesting in investing in the asset, Regal Assets will give you the breakdown offers in a clear view of the reasons you may want to invest in gold right now, and some of the influencers you need to watch how to buy gold that has been moving like stocks, just with more beta, which is why stocks fall in gold on up days, and gain in gold on down days, like today. Nothing has changed fundamentally. Gold falling does not mean the dollar is saved.

If you invested in stocks 10 years ago you have lost money. If you invested in gold you almost quadrupled. All investments pull back, just listen to the CNBS talking heads who said to stay in stocks all the way down from the 2007 peak.

JPM and the Gold Men are fighting against the rise of gold and silver with both hands. Physical precious metal buyers, don’t, as a rule, buy the Wall Street riggers’ ponzi junk. If there is anyone out there who still doesn’t believe that the precious metals prices are being manipulated, then they will have a hard time explaining the latest move by the CME. The CME is doing its best to keep silver prices from inflating.

The CME, once again, raised margin requirements on silver. Maintenance margins have been upped from $6,500 to $7,250. It wasn’t more than just a week ago that the CME hiked the margins as silver was approaching $30 an ounce. The financial overlords sure don’t want to see

JPM’s short silver positions blow up. The CME also just raised margin requirements on gold by 6%.

Now is the time to buy in this big dip with all your might. TPTB are throwing everything they’ve got at gold. They can’t win, so they are doing gold investors a HUGE favor by lowering the buying price. Even gold skeptics like Julian Robertson are now following the yellow brick road.

While other investors are busy rounding up all sorts of economic data, tea leaves and fortune cookies and tell you, “Gold Getting Hammered” all the while attempting to figure out our economic situation for next year, I’m heading out the door again to the safe haven of Regal Assets, who know the score on those faulty headlines…cause’ they’re doors are not locked but open to enlighten you about the market speculation behind those headlines—that are a typical infantile “American” hyperbole.

The continued bull market in the price of gold has been one of the staple discussions in the financial media for the better part of a decade. If you ask ten Wall Street pundits to explain the upward movement, you will most likely get nearly ten different answers. At Regal Assets, there is none of this infantile bureaucratic mumbo-jumbo, because they too know, Gold hasn’t even started yet. This is the time to BUY, BUY, BUY! Call Regal Assets, where you will learn why sky’s the limit for Gold now!

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