‘Zero Inflation’ in U.S. = Hyperinflation Warning?
By Jeff Nielson
August 21, 2012
VANCOUVER (Silver Gold Bull) — It’s impossible to cover developments in the global economy without feeling a lot like Alice in Wonderland surrounded by legions of Mad Hatters. This is especially true when covering the realm of anti-logic known as the U.S. economy.
We’re told that the U.S. economy has been experiencing an “economic recovery” for the past 3+ years — led by manufacturing growth — while its energy consumption has plummeted so fast that the world’s great Energy Glutton is now a “net energy exporter”.
We watch reports of U.S. homebuilders starting construction on roughly twice as many homes as they sell, month after month, year after year — and then the media Mad Hatters tell us inventories of unsold new homes have been plummeting downward all this time.
We’re told that U.S. Treasuries should be fetching (by far) their highest prices in history, even though the U.S. is hopelessly bankrupt when using the same accounting standards it requires of its own corporations. We’re told by one of the more esteemed Mad Hatters that Treasury prices and Treasury supply should be simultaneously increasing exponentially.
So it comes as little surprise to this “Alice in Wonderland” scribe to see Asian governments meeting to discuss a “food-price shock” while simultaneously the U.S. government reports “zero inflation”in its own economy.