How This Will Play Out
Tuesday, April 19, 2011
Executive Summary
- Why downward pressure on the US dollar is building
- What to expect when the Fed “ends” quantitative easing in June
- The factors most likely to cause a major breakdown in the dollar
- What you should do to protect against a dollar collapse
- Why time is your most precious (and depleting) asset right now
Part I: The Breakdown Draws Near
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II: How This Will Play Out
Meanwhile…
Inflation continues to climb in every market except the United States, which tells us that US inflation statistics are probably wrong. In a global economy where the dollar is the world’s reserve currency, and given the fact that the dollar is down roughly 8% over the past year, it is practically impossible for inflation to be higher everywhere besides the US.
In Europe, the highest monthly gain in inflation in the record series was just recorded:
Euro Zone Posts Record Monthly Inflation
April 15, 2011
LONDON—A record monthly increase in euro-zone inflation unexpectedly pushed up the annual rate to a 29-month high in March, a move that is likely to strengthen expectations that the European Central Bank will further tighten monetary policy further this year, official data showed Friday.
The euro zone’s inflation rate rose to 2.7% from 2.4% in February, the highest level since October 2008 when the rate was 3.2%, the European Union’s Eurostat agency said. Economists were expecting no change from the preliminary March estimate of 2.6%.
“The ECB’s fear that an upswing in headline inflation will sooner or later seep through into core inflation, is threatening to become reality,” said Peter Vanden Houte, an economist at ING. “We think that two more rate hikes this year are already a done deal.”
On a monthly basis, a seasonal increase in prices for clothing and footwear, and higher costs for transport fuel and heating oil, led to a 1.4% jump in the consumer-price index after a 0.4% rise in February.
by pinecarr 
