Purchases of u.s. debt by governments, corporations, and individuals have been lagging during Obama’s tenure as president, so predictably the Fed has been forced to monetize some of the debt, printing hundreds of billions of new dollars to buy the debt, to be repaid with interest of course, but how much will those dollars be worth when repaid because of the Fed’s inflationary “quantitative easing” policy?
Food and gas prices are on the verge of going through the roof, so the smart money is on food and oil producers as investments, hedges against the certain big inflation for 2011 and probably on into 2012 which could cause food protests in even the u.s. The global supply of food and oil is not keeping up with the global demand, and as governments are monetizing their debts on a broad scale to maintain their ostensible solvency, rampant inflation, the great hidden tax, will be the new burden on everyday people, taking money right out of our pockets.
The talknig heads of the news outlets will act surprised and bewildered when the big inflation hits this spring, after all, they’ve been repeating the governmental mantra that there is no inflation to speak of, but a rude awakening is coming soon certainly. If you look at global commodity prices over the last year, many of them have increased by over 50%, and all of them up greatly, with no hope in sight considering all the bad weather worldwide and the monetized debt schemes of the governments.
The governments of the world can’t raise taxes, it’s politically impractical, so they monetize the debt instead, simple as that, and we pay that really not hidden tax, holding cash will not be the way to go, it’s commodities, surely hundreds if not thousands of new farmers and cattlemen to start businesses as the world demand continues to exceed supply. Hold onto your hats, it’s gonna be wild ride, as too it’s demonstrated by such as http://genesisveracityfoundation.com that all of the Bible is true, even Genesis.