Inflation Up Globally
By Greg Hunter
24 OCTOBER 2011
The meeting yesterday in Europe to come up with a plan to stem the sovereign debt crisis turned sour. Zero was accomplished, except to put even more fear into the world over an impending financial meltdown that will likely be worse than the 2008 mushroom cloud. The Telegraph UK is reporting, “During two hours of bitter exchanges during a meeting of all 27 EU leaders before a crisis summit of the Eurozone’s 17 members on Wednesday, President Sarkozy fought hard to get the Prime Minister barred from talks that would finalise a 100 billion euros cash injection into banks. “We’re sick of you criticising us and telling us what to do. You say you hate the euro, you didn’t want to join and now you want to interfere in our meetings,” the French leader told Mr. Cameron, according to diplomats.” It appears members of the EU are having a hard time coming up with a plan which will, no doubt, be some sort of combination of bank failure, steep haircuts in sour sovereign debt, and money printing to pick winners.
So, what does Europe have to do with global inflation? I figure if there is no plan soon, things may get out of control. In this scenario, the ECB may be forced to print euros like crazy. Meanwhile, the Fed would rev up its printing press at the same time to help fight off another out-of-control systemic failure. This latest possible money dump falls against a backdrop of accelerating global inflation caused by multiple rounds of currency creation since 2008.