In response to:

Where Is The Inflation?

Steven H of WA Wrote: Sep 16, 2012 3:50 PM
Call me a cynic but I believe the Fed has one and only one mission: to keep the interest rates on Treasuries low! If there is a secondary boost to the economy, all the better, but the real purpose it to keep the debt bubble inflated so spending spree can role on. Think about it, at $16 trillion in debt, a 1% increase in net interest to the Treasury results in a $160 billion increase in spending on debt service alone. Now imagine the interest rates returning to normal historic levels, or even worse to late 1970s double digit rates! The worse things get the more the government lies to us. They remove energy and food from the CPI, are you kidding me?

The Consumer Price Index was released this morning. It was up slightly.

US Consumer Price Index data by YCharts

Some are mystified by the economic results of the expansionary Federal Reserve policy. The Fed is working to try and get inflation started, but it doesn’t come. There is no inflation in the economy yet. The reason, money isn’t turning over. It’s being created by the Fed and it gets stuck into the banking system. Banks aren’t lending because they increased their requirements for lending after the financial crisis, and after the passage of Dodd-Frank. Additionally, because of all the...