Money growth in the United States has been accelerating. It's now at 6.0% plus. The eurozone has been the zone of money tightness, but the tightness may be coming to an end.
Spanish and Italian government bond prices rose and their yields fell today for a third consecutive session after the European Central Bank stepped in to purchase their sovereign debt. Will the ECB continue the purchases? If they do, it will mean eurozone money printing. Right now they have some cash on hand with which they are buying the bonds, but if they stop, the crisis resumes. The only alternative, as far as banksters are concerned, is bailout not default, which means at some point the ECB is likely to start printing money. If they do, we will be very close to global price inflation.
China is slowing its money growth, but not stopping. Thus, we may be very near a "perfect storm" global price inflation environment.
We are not there yet, the eurozone is the drag, but we are getting very close. At such time, we may be having aggressive buying for gold and other commodities, never seen before. Get ready. Federal Reserve caused price inflation is going to be bad enough, but if the eurozone gets into money printing then the price inflation could be on a global scale never seen in human existence.
No comments:
Post a Comment