'admin' pid='22589' datel Wrote:Good luck with that gold bet, I'm rather sceptic, I have to say. After four years of liquidity pumping by central banks left right and center, inflation still hasn't taken off at all:
- http://shareholdersunite.com/mybb/showth...p?tid=3648
- http://www.washingtonpost.com/blogs/wonk...ezra-klein
- http://jaredbernsteinblog.com/low-demand-low-inflation/
It will be interesting to see what happens in Japan, as they've taken 'stimulus' to new heights as we speak.
If we accept the "official" rates of inflation, you are correct, inflation is negligible. However, the "official" rates of inflation do not include the necessities of living like food and energy. These excluded items, while cheap in the western developed countries, often make up 50% or more of the income of people/families in developing countries, perhaps over 50% of the world's population. Inflation for these people has been very high and is straining their ability to pay for basic necessities.
Perhaps it is precisely because of the increases in both costs of energy and food as well as the increased consumption of energy and protein that is soaking up all those printed fiat currencies. If so, once that has reached a balance, or tipping point, inflation is likely to become rampant and excessive in most/all currencies.