Friday, October 8, 2010

Phil Flynn: Give Me That Old Time Inflation

..... it's good enough for me. The Federal Reserve has changed sides! Can you believe that the Federal Reserve is rooting for inflation! I mean that is like Superman rooting for the communists. The Feds' mission has always been to fight inflation, not create it. Yet that is exactly what they are doing. Of course the truth is, regular readers of my reports have known for years that the Fed joined the inflationary dark side of the force.

The Fed wants commodity prices higher to inspire economic activity as business start to fear that use it or lose it in relation to the spending power of their devalued dollars. The Fed wants inflation and they know how to create it and you cannot get in the Feds way. It is as I wrote the day after Quantitative Easing 1 March, 2009 when I said, "I fought the Fed and the Fed won. I fought the Fed and the Fed won.

Needed money so they printed some, I fought the Fed and the Fed won." I went on to say, “ do not underestimate the way this Fed can change the marketplace. The Fed's timing of this move to quantitative easing still has the market coming to grips with the shorter and longer term effects on the economy and the markets. The one thing that is for sure is that the rules of the game have changed.

And when it comes to a knife fight and Fed power, there are no rules. Someone say one, two, three, gold! In a blink of an eye the Fed, with its unlimited power to print money, can change the dollar value of a commodity or its long term trend in an instant. By creating inflation and money out of thin air they can.......Read the entire article.

Watch "How to Take Money and Emotion Out of The Gold Market"


1 comment:

David Wozney said...

If the stated value, of “Federal” Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.

The October 8th metal value of these nickels is “$0.0617794” or 123.55% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” at