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Posts Tagged ‘the real rate of inflation’

Inflation: The Real Deal Not Uncle Sam’s Charade

Posted by Larry Doyle on October 11th, 2013 7:14 AM |

One of the main arguments made by the Federal Reserve for continuing to run the printing press via its quantitative easing program is the fact that the reported rate of inflation is running below its long term target of 2%.

Based on that reality (real or perceived?),  Ben Bernanke has been very comfortable opening the Fed’s QE-hydrant and letting the dollars flow despite the fact that the Fed’s liquidity does not appear to be gaining meaningful traction in the system and actually stimulating true economic growth.

Some might say that things would be far worse without Ben’s liquidity, but first let’s take a harder look at that reported rate of inflation and focus on that qualifier “reported.”  To do so, I welcome navigating into a report recently produced by Deutsche Asset & Wealth Management entitled Is The Inflation Threat Hype — or Real? (I thank the regular reader who highlighted this report.)  (more…)






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