Inflation in UK is at 4% today - Mr Bernanke still can not find it on U.S. soil and it shows us that we have the business with FED as usual.
"We guess that we can all relax now and continue to buy US Treasuries...by the way FED becomes once of the largest holders of US Treasuries on par with China and Japan now.
We have just three small concerns with this perfect scenario of getting wealthy again - by printing money.
1. We still remember Maestro Greenspan with his "Fragmented Real Estate market, which can not be in a Bubble..."
2. Mr Bernanke assurances that the "Mortgage crisis is contained..." just before the Lehman collapse.
3. Oil price is above 100 usd/b and Wikileaks revelations about Peak Oil situation and real Saudi Arabia Oil reserves.
Maybe we should all just send to FED our grocery bills every month - otherwise they can miss the picture again."
We have already a rumping inflation in developing world in places like China, India and Brazil - but they have growth and should they allow their currencies appreciate against US Dollar this could be manageable. In UK we are talking about consumer being now between the rock and the hard place - prices are rising and most notable Gas is at all-time-high now above 1.3 pounds per liter - and BOE will have to raise the rates to keep us its mandate to keep inflation at 2%. This last favour to the FED will be very costly in the end to the UK economy and it just keep denial about the real strategy implemented by the FED: to inflate the debts out. Problem in that "perfect plan" is Oil, which is already at 100 $/b for brent at the moment when there is "no inflation risk" according to Mr Bernanke.
"It was all about Oil. And it is not any more...whose in power will be holding until the last second, but even they can not change the inevitable. Now it is all about survival in the Post Carbon world. There is no more cheap oil left and revolution has began - we have the only chance to change its course and make it thenew industrial revolution. The base is the new disruptive technology: Electric Cars - they will allow us to get out of Oil Needle very fast if we will take things finally seriously.
The End of Empire has already came to our doorsteps: unsustainable debt, chronic budget deficit, insolvent corrupted financial system - it was only the part of the problem. Egypt and Wikileaks revelations show that revolution is unstoppable now and that Empire, as we remember it with U.S. policing the whole world, is not there any more. There is not enough resources to keep the balance by just making the bad guys eating each other. China has become the world second largest economy, Energy imbalance is unsustainable and China is moving fast into the Electric Cars. Next wars will be the wars for resources - for what is left in the ground - we are hitting Peak of Everything."
No comments:
Post a Comment