Friday, December 21, 2007

More inflation on the way! Thank you, Fed!

Core PCE for November shows growing inflation concerns, especially in the yearly rate. And American consumers go even deeper in debt. Here is the story at marketwatch.com

Consumers outspend incomes in November

All the more reason to keep buying commodities!

Also, did you see the news this week that the ECB injected 500 billion Euros of newly-created fiat money into the financial markets this week? $500 BILLION! And the BOE injected 100 billion Pounds? Those are enormous amounts of new money. I was flabbergasted. If that's not inflationary, what is?!

Wall Street will love it, because most of that capital will be injected into the financial markets. But it all spells more inflation, and more commodities profits. And fools gold corporate profits. But it may temporarily and partially restrain the US Dollar's fall, if that may be considered a thin silver lining.