inflation

Troubled global economies fuel inflation fears by printing piles of money

Monday, January 16, 2012 by: J. D. Heyes
Tags: inflation, printing money, global economy

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
The five biggest lies about Ebola being pushed by government and mass media
Why does the CDC own a patent on Ebola 'invention?'
White House admits staging fake vaccination operation to gather DNA from the public
Ultraviolet light robot kills Ebola in two minutes; why doesn't every hospital have one of these?
EXCLUSIVE: Natural News tests flu vaccine for heavy metals, finds 25,000 times higher mercury level than EPA limit for water
Truvia sweetener a powerful pesticide; scientists shocked as fruit flies die in less than a week from eating GMO-derived erythritol
Irrefutable proof we are all being sprayed with poison: 571 tons of toxic lead 'chemtrailed' into America's skies every year
Russia taking McDonald's to court, threatens countrywide shutdown
Oregon man serving prison sentence for collecting rainwater on his own property
The best way to help your body protect itself against Ebola (or any virus or bacteria)
Senator who attacked Doctor Oz over dietary supplements received over $146,000 in campaign contributions from Big Pharma mega-retailer and Monsanto
Global warming data FAKED by government to fit climate change fictions
Healthy 12-year-old girl dies shortly after receiving HPV vaccine
Ebola outbreak may already be uncontrollable; Monsanto invests in Ebola treatment drug company as pandemic spreads
HOAX confirmed: Michelle Obama 'GMOs for children' campaign a parody of modern agricultural politics
Ben & Jerry's switches to non-GMO, Fair Trade ice cream ingredients
W.H.O. contradicts CDC, admits Ebola can spread via coughing, sneezing and by touching contaminated surfaces
BREAKING: CDC whistleblower confesses to MMR vaccine research fraud in historic public statement
Delicious
(NaturalNews) As if Americans and people of other Western nations didn't have enough economic trouble, now comes new fears of rampant inflation with news that many of the world's largest central banks are trying to "create" wealth by "printing money like gangbusters," a noted analyst said this week.

Pimco founder Bill Gross, in an interview with CNBC, said the banks are printing "hundreds of billions" in currency and putting it all in circulation, which "can produce reflation and that's why we're seeing the pop in oil, gold" and other commodities, he said.

At a time when Eurozone credit is being downgraded due to excessive debt and, in the United States, the government is poised to add $6.2 trillion in new debt during President Obama's first term, the last thing the people of the world's "richest" nations need is a currency and inflation crisis. Yet, that seems to be where things are headed.

Gross says the tactic being employed by the central banks also runs the risk of creating deflation, if you can grasp that, which would happen instead "if the private credit markets can't produce some sort of confidence and solvency going forward." He adds: "So we're at great risk here, not only in the U.S. but on a global basis."

The news comes as Standard & Poor's downgrades the credit of France and eight other nations, as debt problems continue to plague the "benefits-for-all" economies of socialist European nations.
At home, the news is not much better. Under Obama's watch, Democrats and Republicans are on pace to add more red ink to our books than the U.S. added from Washington to Clinton. And, at least Europe can say it wasn't first when it comes to losing credit ratings: S&P downgraded our credit back in August.

How far we've come - or regressed. The entire U.S. national debt did not even surpass $6.1 trillion in total until August 2002, during George W. Bush's first term. Paul A. Volker, president of the Federal Reserve (our central bank) from 1979 to 1987, even says "a little inflation can be a dangerous thing." In a September column for The New York Times, Volker says past economic history shows that encouraging inflation as a way to get businesses to invest and wages to increase is doomed to failure:

"[T]he danger is that if, in desperation, we turn to deliberately seeking inflation to solve real problems -- our economic imbalances, sluggish productivity, and excessive leverage -- we would soon find that a little inflation doesn't work. Then the instinct will be to do a little more -- a seemingly temporary and reasonable 4 percent becomes 5, and then 6 and so on."

Inflation, stagnation, borrowing, debt, and little-to-no real growth, coupled with increasing economic pressures from overseas as the world's stronger economies struggle as well, can only mean bad things for the future. Compounding that threat is the fact that politicians on both sides of the Atlantic seem impotent or worse, unwilling, to do what's necessary to stop hemorrhaging trillions of dollars their governments simply don't have. Eventually the cash spigot runs dry; printing more money doesn't make you "rich," any more than a book of blank checks means you automatically have money in your account.

Sources:

http://www.cnbc.com/id/45960932

http://cnsnews.com/news/article/obama-pace-borrow-62t-one-term-more-all-presidents-washington-through-clinton-combined

http://www.naturalnews.com/033253_Standard_&_Poor_debt_rating.html

http://www.nytimes.com/2011/09/19/opinion/a-little-inflation-can-be-a-dangerous-thing.html

Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support NaturalNews.com by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite NaturalNews.com with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

GET SHOW DETAILS
+ a FREE GIFT

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.