Time to buy gold and silver as central bank data finally shows inflation is coming

Thursday, June 11, 2015
By Paul Martin

By: Peter Cooper
Thursday, 11 June 2015

It is time to buy gold and silver again as new central bank data shows that the European Central Bank and Federal Reserve have finally been successful in creating inflation. Whether they will now be able to control it is completely another matter, and buying gold to hedge against the very real possibility that they lose control is going to be the next big thing.

Oxford Economics has assembled data that shows ‘narrow’ M1 money in the eurozone expanding at the phenomenal rate of an annualized 16.2 per cent for the past six months. The wider measure of the money supply M3 is growing by the fastest rate since 2008, up 8.4 per cent in the same period.

US money supply

The Federal Reserve has quadrupled its balance sheet since the global financial crisis, pulling and pulling on a piece of string that never seemed to break. Now the brick on the end of that string may be about to fly into its face as M3 growth has returned to post-war averages, up around eight per cent so far in 2015.

Inflation is coming, like the cavalry coming over the hill in battles of yesteryear. Only its appearance in the nick of time can save the world from its debt mountains and a downward deflationary debt spiral. Anybody might think the central banks have been planning this all along, and yes that’s the obvious truth, except that it just did not seem to be happening.

Thank Mario Draghi at the European Central Bank for leading the charge with quantitative easing in the eurozone that has finally put the cat among the pigeons. Inflation is now coming home to roost.

The Rest…HERE

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