Buying Silver in the Age of Transitory Inflation and Other Political Delusions
By Dr. Jeffrey Lewis
Friday, 4 January 2013
Spokespeople for the U.S. Federal Reserve have been saying that rising food and energy prices are transitory. They have now been pushing that illusion on the market for ten years, and some traders are still waiting for inflation to fall.
Nevertheless, the fact is that these price rises are not transitory, and they are instead permanent, systemic and intentional. Furthermore, prices are going to keep on getting higher and higher by all rational indications.
Debt Expansion Policy Makes Inflation Inevitable
When Ben Bernanke was first appointed Chairman of the Fed by then-President Bush in February of 2006, the U.S. Treasury’s funded debt was ‘only’ $8.183 trillion.
Nevertheless, by last December, when the FOMC announced its latest monetary policy measures, the U.S. Treasury’s debt had more than doubled to hit the even more astronomical 16.376 trillion level.
In other words, the Treasury’s funded debt had increased by more than 100% over a period of almost seven years, averaging a rise of roughly 14.6 percent per year during that time frame. Commodity price rises in U.S. Dollar terms have been relatively subdued in comparison with this remarkably high level of U.S. debt expansion.
Silver as the Financial Solar Plexus