They’re Trying to Fool You Into Believing That Inflation Is Not a Problem

Mac Slavo
November 2nd, 2011
SHTFplan.com
129 Comments

We’ve been very, very clear that we will not allow inflation to rise above 2 percent. We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time. That time is not now.

Federal Reserve Chairman Ben Bernanke December 6, 2010

With all of the problems in Europe, protests on Wall Street, and middle east conflicts over the last year, something that has escaped scrutiny by prime time media stars and the general population is the consistent rise in prices across all consumer goods and services. While the Federal Reserve says they have inflation under control, their continued intervention into the financial and monetary systems of the global economy is leading us down a road that may very well lead to high inflation rates similar to those we saw in the 1980′s, or perhaps something much, much worse.

For the Federal Reserve, policymaking these days is about deciding which of two imposing evils to take on – a decidedly moribund economy or the increasing threat that inflation poses to battered consumers.

For much of the slow slog out of the financial crisis, the Fed which is meeting this week and will issue its policy statement Wednesday, has managed to train its gaze on jump-starting growth through its various quantitative easing measures.

But recent indicators show that inflation is posing an equally daunting threat that further monetary accommodation from the Fed might serve only to aggravate.

The pressure has come primarily through measures that Fed Chairman Ben Bernanke likes to call “transitoryâ€