Former Plunge Protection Team member Philippa Malmgren, president and founder of DRPM Group, told an audience at the the 2014 European Investment Conference that Western governments are deliberately defaulting on their mountains of debt without it being formally called a default.
She claimed they are doing so by manufacturing inflation through unprecedented monetary expansion, thereby lowering the purchasing power of creditors, which include some of the most powerful countries in the world, most notably China.
Malmgren contended that inflation is not being reflected in the statistics published by central banks in the West but it is very much there. The rising prices of key items — such as wheat in the Middle East, pork in China, and onions in India — are causing ripples in those societies. She also believes that it is a misconception that inflation does not matter in the West, adding that the top issue in the United Kingdom in the coming 2015 national elections is the rising cost of living (though inflation indicators published by the Bank of England may not suggest the same).
(via Usman Hayat)
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