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Those Soaring Food And Gas Prices? The Fed Has A Name For Them: "Noise"

Tyler Durden's picture


Don't worry about the surging food and gas prices you face each and every day... Janet Yellen says "it's just noise" and is actually "evolving exactly as they expected." It is this kind of mind-blowingly ignorant of the facts statement that has the central banks of the world losing more and more credibility (just take a look at the dot plot's 0.5 to 4.25% rate expectations for 2015). The following exchange between Yellen and Liesman is simply priceless in its ignorance.


This looks like a trend to us...


But no - The Fed says its transitory and exactly what they expected...



There's every reason to expect, Madam Chair, that the PCE inflation rate, which is followed by the Fed, looks likely to exceed your 2016 consensus forecast next week. Does this suggest that the Federal Reserve is behind the curve on inflation? And what tolerance is there for higher inflation at the Federal Reserve? And if it's above the 2 percent target, then how is that not kind of blowing through a target the same way you blew through the 6.5 percent unemployment target, in that they become these soft targets? Thanks.


So I think recent readings on, for example, the CPI index have been a bit on the high side, but I think it's -- the data that we're seeing is noisy. [ZH: What noise?]


I think it's important to remember that, broadly speaking, inflation is evolving in line with the committee's expectations.


The committee has expected a gradual return in inflation toward its 2 percent objective. [ZH - It's already there!!!!!] And I think the recent evidence we have seen, abstracting from the noise, suggests that we are moving back gradually over time toward our 2 percent objective and I see things roughly in line with where we expected inflation to be.


I think if you look at the SEP projections that were submitted this time, you see very little change in inflation projections of the committee. [ZH: Because you are all ignorant!!]

Still believe The Fed has inflation all under control?


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Wed, 06/18/2014 - 15:33 | 4870717 Four chan
Four chan's picture

same asset as always, measured against a devaluated/inflated currency.

Wed, 06/18/2014 - 15:41 | 4870761 DoChenRollingBearing
DoChenRollingBearing's picture

Yet the Baltic Dry Index is at a one year low ($858), it has not been loewr before then, but not much:

(, enter symbol $BDI)

Wed, 06/18/2014 - 15:42 | 4870770 AlaricBalth
AlaricBalth's picture

. " is that not kind of blowing through a target the same way you blew through the 6.5 percent unemployment target, in that they become these soft targets?"

Steve Liesman is such a joke. The Fed knows, but will not state, that the 6.5% unemployment number is an illusion.

Let's all stop working and looking for work so we can achieve a 0.00% unemployment rate.

Wed, 06/18/2014 - 15:44 | 4870780 DoChenRollingBearing
DoChenRollingBearing's picture

You commented before I could clean up my typos!  BDI at HAS been lower than $858, but that was way back when...

Wed, 06/18/2014 - 15:47 | 4870795 AlaricBalth
AlaricBalth's picture

Sorry DoChen.  You have to be quick around here.

Wed, 06/18/2014 - 16:21 | 4870952 James_Cole
James_Cole's picture

It's a catch22, no matter whether due to fed action or inaction these trends will remain. Fed action does manage to hide ugly realities about US economy though. 

Wed, 06/18/2014 - 16:38 | 4871024 RaceToTheBottom
RaceToTheBottom's picture

I cannot afford any more of this noise!!!

Wed, 06/18/2014 - 16:53 | 4871069 AlaricBalth
AlaricBalth's picture

Bleed you dry
Against your will
Think you're running
But you're standing still

It's all you wanna do now
Yeah Yeah
It's all you wanna do now

Stop the noise!
You gotta stop the noise, man!
Only in America

Zeromancer - Stop The Noise Lyrics | MetroLyrics

Wed, 06/18/2014 - 17:34 | 4871177 COSMOS
COSMOS's picture

LOL yep just NOISE

Just like the gurgling stomach sounds of the millions who can't afford to buy as much food here and abroad due to USA fed inflation LOL

If they say they are hungry tell them its 'Just Noise' coming from their stomachs....

Wed, 06/18/2014 - 19:16 | 4871545 boogerbently
boogerbently's picture

I would say that all factors OTHER than food and gas are "noise".

Thu, 06/19/2014 - 02:49 | 4872628 SF beatnik
SF beatnik's picture

Here in Cal, shopping at Whole Foods Market, in recent years, my sense of the rate of inflation of food prices is upward of twenty percent per year. 

Wed, 06/18/2014 - 16:55 | 4871074 jbvtme
jbvtme's picture

madam comrade...did you say "the committee"?

Wed, 06/18/2014 - 16:40 | 4871031 nink
nink's picture

We have now added sand to the inflationary index.  We do not view the large amount of sand in the world and low demand is an issue.

After performing detailed analyses we have noticed the cost of sand is dramtically decreasing so we have reduced the average inflation rate accordingly and find the new overall inflation rate is -2% so we are actually in a deflation situation. 

Wed, 06/18/2014 - 16:53 | 4871066 AlaricBalth
AlaricBalth's picture

Double Post. My Bad

Wed, 06/18/2014 - 16:31 | 4870998 clownfishheaven
clownfishheaven's picture

It has dawned on me that if we can have negative interest rates, it's possible that negative unemployment rate is not far behind.

Wed, 06/18/2014 - 16:37 | 4871022 AlaricBalth
AlaricBalth's picture

"Because taking current trends across all employment indicators, using 12 Month trailing averages in the changes of those employed, unemployed and dropping out the labor force, we can predict, with IMF-level precision, that at the current surge of those leaving the labor force, the US unemployment rate will hit 0.0% in December of 2021 and finally go negative, or -0.1% in January 2022."

Wed, 06/18/2014 - 16:50 | 4871060 Steverino
Steverino's picture

to be expected from a report who's name is "Lies-man"....

Wed, 06/18/2014 - 16:51 | 4871061 Steverino
Steverino's picture


Wed, 06/18/2014 - 15:44 | 4870783 Da Yooper
Da Yooper's picture

Figures dont lie - BUT professional liars sure can figure

Wed, 06/18/2014 - 16:05 | 4870877 Uber Vandal
Uber Vandal's picture

Fear not, when it goes up, even a few percentage point, or even if / when it breaks 1000 again, it will be heralded as how the economy is on the mend, and all is well.

When it replays the fate of the Titanic, Empress of Ireland, Britannic, and Lusitania, there is NEVER a peep from the media, or if there is, the media will insist that it is an obsolete metric and should be ignored.

Wed, 06/18/2014 - 15:33 | 4870719 rsnoble
rsnoble's picture

Fuck you bitch!

Wed, 06/18/2014 - 15:36 | 4870734 Double.Eagle.Gold
Double.Eagle.Gold's picture


are you sure you really want to express those exact sentiments


to her?



Wed, 06/18/2014 - 15:35 | 4870724 alien-IQ
alien-IQ's picture

what else would you expect from people who don't have to pay for their own food and gas?

people who don't own stock (i.e. most of america) call the stock market "noise". granted, that's only the people who are paying attention, which is admittedly few....but nevertheless...

Wed, 06/18/2014 - 15:53 | 4870827 Number 156
Number 156's picture

All of this noise is making me hungry.


Wed, 06/18/2014 - 16:19 | 4870948 alien-IQ
alien-IQ's picture

wait for the edible i-pads. they'll be released soon...and probably cost less than a steak.

Wed, 06/18/2014 - 17:35 | 4871180 COSMOS
COSMOS's picture

I think the noise is coming from your STOMACH, hahah just wait and see how much less you will be able to buy for it with inflation...

Wed, 06/18/2014 - 16:42 | 4871037 RaceToTheBottom
RaceToTheBottom's picture

Here, eat my iPad

Wed, 06/18/2014 - 15:35 | 4870725 NOTW777
NOTW777's picture

just like the "bumps in the road" in benghazi

Wed, 06/18/2014 - 15:34 | 4870726 rum_runner
rum_runner's picture

It's the Federal Reserve equivalent of "nothing to see here, move along."

Wed, 06/18/2014 - 15:35 | 4870730 Jethro
Jethro's picture

What are they measuring to get 2%?

Wed, 06/18/2014 - 15:36 | 4870735 negative rates
negative rates's picture

Their own judgement, which is always wrong, but never in doubt.

Thu, 06/19/2014 - 07:35 | 4872847 N2OJoe
N2OJoe's picture

They go to the supermarket, check the price of meat, and mark it down 18 percentage points.

BAM 2% inflation!

Wed, 06/18/2014 - 15:37 | 4870738 alien-IQ
alien-IQ's picture

the size of bernake's dick in relation to 1 inch?

Wed, 06/18/2014 - 15:46 | 4870790 Babaloo
Babaloo's picture

They use the PCE deflator, which is running about 1.5%.

Wed, 06/18/2014 - 15:39 | 4870732 Squid Viscous
Squid Viscous's picture

as long as the price of Geviltefish is the same at Fairway Mkt on the upper west side, it's all good you dumb goys, and god forbid it goes up, I can still afford it....

Wed, 06/18/2014 - 15:40 | 4870739 Joe Tierney
Joe Tierney's picture

Now we know what's inside that bloated head of her's - NUTHIN'


Jammit Mellon - Fed Chair-Woman?


Is she Druish?

Wed, 06/18/2014 - 15:37 | 4870741 Bay of Pigs
Bay of Pigs's picture

2%? WTF?

Its a lot higher than that Mr Yellin.

Wed, 06/18/2014 - 15:39 | 4870748 Al Huxley
Al Huxley's picture

Just ignore discretionary things like gas and food, and then it snaps right back under.

Wed, 06/18/2014 - 15:41 | 4870764 Bay of Pigs
Bay of Pigs's picture

Dont forget cable, taxes, tuition and long list of other things that are steadily going UP.

Wed, 06/18/2014 - 15:51 | 4870819 ParkAveFlasher
ParkAveFlasher's picture

It's all in, it's up to the discretion of whomever is telling you the inflation rate, whethere or not to actually present the inflation rate to you.

Wed, 06/18/2014 - 16:00 | 4870852 pakled
pakled's picture

Cable? did someone say CABLE? Cable = ZH. Better classify it with food & energy.

Wed, 06/18/2014 - 17:54 | 4871228 Rubbish
Rubbish's picture

I'm now raising my service rates to my clients every 6 months, they aren't happy about it. I refuse to be left behind if I can avoid it. It's do or die.


Everything is going up, these fuckers.

Wed, 06/18/2014 - 15:37 | 4870742 Al Huxley
Al Huxley's picture

Still believe The Fed has inflation all under control?

Well, no, but then again, I never really did.


Wed, 06/18/2014 - 15:38 | 4870743 lasvegaspersona
lasvegaspersona's picture

no inflation in the price of gold...fer sure...

Wed, 06/18/2014 - 15:45 | 4870791 DoChenRollingBearing
DoChenRollingBearing's picture

Not yet...

Wed, 06/18/2014 - 15:56 | 4870840 Four chan
Four chan's picture

now thats an ironic fact.

fed owners to banks: "buy everything you can with zirp, except gold, let china have all that."

Wed, 06/18/2014 - 15:39 | 4870752 The Duke of New...
The Duke of New York A No.1's picture

That "noise" is the middle-class screaming that they are being wiped out.

Wed, 06/18/2014 - 15:48 | 4870803 Da Yooper
Da Yooper's picture

Oy oy oy

but ve hab terroists running loose all over the middle east oy oy oy

de middle class vill hab to wait

Wed, 06/18/2014 - 16:27 | 4870977 corporatewhore
corporatewhore's picture

they may be screaming but major league baseball and the kardashians keep drowning them out.

Wed, 06/18/2014 - 15:39 | 4870753 buzzsaw99
buzzsaw99's picture

when the fed says inflation they mean wage inflation

Wed, 06/18/2014 - 16:04 | 4870778 fonzannoon
fonzannoon's picture

exactly right, and the fed is correct about that, and it's why as long as prices of necessities keep going up without wages going up as well we will continue to have deflationary pressures in the economy. 

Wed, 06/18/2014 - 16:20 | 4870950 ParkAveFlasher
ParkAveFlasher's picture

Why have a job?  You can just work for AmericanExpress, buying stuff.  That would surely be inflationary.

Wed, 06/18/2014 - 15:48 | 4870801 U4 eee aaa
U4 eee aaa's picture

Yep, truly the only number they look at. When slave, I mean, labor costs inch up a fraction of a hundredth of a percentage point, interest rates will spike. Slaves are not allowed to participate in the spoils of the command economy

Wed, 06/18/2014 - 15:50 | 4870808 SDShack
SDShack's picture

More than that, it's really Bi-flation. Wage and Asset Deflation for the masses, is offset by Price Inflation for staples for the masses. Massage the numbers, and you magically get the Fed 2% target inflation. But it gets better. Since Inflation is under control, then the Fed sees all the elite wealth creation and banker bonuses as not adding to Wage Inflation. This just re-inforces their sick sociopathic view of the world and makes them double down on their own destructive policy.

Wed, 06/18/2014 - 15:55 | 4870829 madcows
madcows's picture

Actually, you're probably right.  If wages don't go up, then people's overall expenditures don't go up.  Say you make $50k a year.  If you never get a raise, inflation is zero.  Now, you may have to pay a lot more for food, gas, heating oil, etc... but you'll have to eliminate vacations, house repairs, braces for the kids, right.  So, if the FED were to take all of your expenses and put it into the Sausage-a-matic, it would say that some costs went up and some went down, but overall it stayed the same.  Hence, no inflation.

The FED says we don't have inflation.  Buy I'd say we have a shit load of LivingStandardDepreciation.  And to me, that's the same fucking thing.

Wed, 06/18/2014 - 17:20 | 4871151 ParkAveFlasher
ParkAveFlasher's picture

Inflation is ever present in a fiat currency: even at wage and price parity, and zero interest rates, there need be an expansion of the supply of currency because even if you insist on zero or negative rates, the very act of working the printing press naturally creates a new debt, a new hole, a new gap between what is produced and what is spent (energy, materials, labor, etc) that needs papering over.  Nevermind population growth or shrinkage, which creates incalculable fluctuations.  This is the ever-tail-chasing slow-motion-exploding dog in the currency room.

Wed, 06/18/2014 - 15:40 | 4870755 John Law Lives
John Law Lives's picture

Maybe the Fed is just delusional enough to believe it can print water droplets and end the drought in California and areas of Texas and other areas in the Southwest etc....


Wed, 06/18/2014 - 15:45 | 4870789 Osmium
Osmium's picture

I'd love to send them some of our rain.  8.5 inches so far this week and more to come.

Wed, 06/18/2014 - 16:47 | 4871050 funthea
funthea's picture

Thanx, appreciate that. We could sure use it.

Wed, 06/18/2014 - 15:40 | 4870758 WAMO556
WAMO556's picture

Methinks that these BANKERS are safe and won't face the hangman's noose.


When enough men have lost their families to starvation, no jobs to be had and lack of medicine, then things will get really interesting.

The Arab Spring had nothing to do with democracy and EVERYTHING to do with starving families. It is a man's honor (which NONE of these bankers have) to provide for his family, the job is only the vehicle that provides this ability.

Bankers! The modern day pirate!

Wed, 06/18/2014 - 15:42 | 4870771 Joe Tierney
Joe Tierney's picture


Wed, 06/18/2014 - 16:10 | 4870900 lakecity55
lakecity55's picture

"The Attack of the Red Shield Tribe"

In Technocolor!

Wed, 06/18/2014 - 15:43 | 4870777 U4 eee aaa
U4 eee aaa's picture


Wed, 06/18/2014 - 15:43 | 4870775 U4 eee aaa
U4 eee aaa's picture

Actually, what should be shocking is how mind blowingly ignorant the American people are to the fact that these two crooks can sit there and discuss exactly how much of the people's money they are going to steal. I can't blame a psychopath for being a psychopath. After all, they don't know any better. What I can blame is the crowd for standing around and stupidly blinking while these loonies talk about how well their criminal behavior is progressing

Wed, 06/18/2014 - 17:10 | 4871125 10mm
10mm's picture

Why mind blowing? Outside ZH, are you encountering conversation on the ongoing theft in the general public. I know I'm not.

Thu, 06/19/2014 - 01:44 | 4872560 U4 eee aaa
U4 eee aaa's picture

That's my point. You have something so fundamentally significant to people's live like their money and how it works and people are ignorant about it. You would think something that people depend upon would be better understood. Especially with all the information out there on the web

Thu, 06/19/2014 - 12:55 | 4874217 RallyRoundTheFamily
RallyRoundTheFamily's picture

10mm it is getting better ...slowly

Wed, 06/18/2014 - 15:44 | 4870785 Flakmeister
Flakmeister's picture

That noise you heard was oil production smacking its head on the ceiling...

This plot sums it up better than most, based on  the 2014 BP Energy Review Data just out:

NGL are primary feedstock for petrochemicals and plastics...

Wed, 06/18/2014 - 15:46 | 4870788 orangegeek
orangegeek's picture

inflate all you want.   if fewer and fewer are buying, this won't end pretty


wonder how those holding tanks full of oil/gas/diesel/etc are doing?  hope their isn't a spoil date on them.

Wed, 06/18/2014 - 15:47 | 4870797 Kirk2NCC1701
Kirk2NCC1701's picture

1.  Noise is always a question of dB.  Pump up the volume!

2.  Make her squeal!  Squeal like a... Miss Piggy.

Wed, 06/18/2014 - 15:50 | 4870812 world_debt_slave
world_debt_slave's picture

To the 1% it is just noise, for the rest of us...

Wed, 06/18/2014 - 15:51 | 4870814 NotAMathWhiz
NotAMathWhiz's picture

Sometimes I think they actually believe their own bullshit.  I think they say it over and over, and blather on about it do everyone that will listen, and after a while they actually start believing it.

Wed, 06/18/2014 - 16:04 | 4870876 lakecity55
lakecity55's picture

It got to Hitler. He believed so strongly in the Secret Weapons that he thought he could win the war.

Wed, 06/18/2014 - 16:04 | 4870878 Duke Dog
Duke Dog's picture

I disagree, they know exactly what they are doing! The longer they keep this turd in the punch bowl market, even more sheep will start believing that nobody could have seen the collosal collapse.

Wed, 06/18/2014 - 16:11 | 4870902 U4 eee aaa
U4 eee aaa's picture

I guess it is over when the shoeshine bot starts advertising fractional reserve banking infomercials

Wed, 06/18/2014 - 15:54 | 4870830 Smegley Wanxalot
Smegley Wanxalot's picture

And that Noise is getting louder and louder and louder ....

Wed, 06/18/2014 - 15:54 | 4870831 wmbz
wmbz's picture

So when you are eating a bowl of 'Ol Roy sprinkled with hampster turds, pretending it's rasin bran...Remember it's just noise.

Jack Yellen another completely out of touch fugly CUNT!

Wed, 06/18/2014 - 15:59 | 4870847 F em all but 6
F em all but 6's picture

Noise? Is that like the wooshing sound of air passing through both of your  ears you fucking dried up cunt? Or the noise being suppressed via SNAP cards? Inquiring minds want to know.

Wed, 06/18/2014 - 16:06 | 4870882 lakecity55
lakecity55's picture

"Oh, SNAP! Mah EBT jus broke Tyrone!"
Les' Riot!"

Wed, 06/18/2014 - 16:10 | 4870901 quasimodo
quasimodo's picture

Some of that noise is me dropping the f bomb every time I get groceries, after realizing the price of XXX has gone up whilst the amount has gone down.

What pisses me off even worse is most of the bleating sheep don't even realize this is happening.

Wed, 06/18/2014 - 16:11 | 4870904 U4 eee aaa
U4 eee aaa's picture

Someone should create a guillotine drone. Just imagine the airtime it would get

Wed, 06/18/2014 - 16:15 | 4870929 madcows
madcows's picture

They're going to have to remake "Brother can ya spare a dime" as "Brother can ya spare a hundy"

Wed, 06/18/2014 - 16:22 | 4870959 TabakLover
TabakLover's picture


Wed, 06/18/2014 - 16:27 | 4870983 hangemhigh77
hangemhigh77's picture

This is LOWflation from LOW iq REEEEEEETARDS.

Wed, 06/18/2014 - 16:28 | 4870989 ilovemilken
ilovemilken's picture

Willing to bet Ms. Yellen does not have an Albertson's card.

Wed, 06/18/2014 - 18:03 | 4871253 Rubbish
Rubbish's picture

Albertson's doesn't use cards any longer. This is a trick.

Wed, 06/18/2014 - 16:38 | 4871023 yogibear
yogibear's picture

As the prices keep their the  Fed's noose, not noise.

Tighter once out out of control.

Wed, 06/18/2014 - 16:43 | 4871041 NoWayJose
NoWayJose's picture

It is worth repeating Santelli's question - "If things are so rosy, then why don't we end QE now."

Wed, 06/18/2014 - 16:47 | 4871052 Racer
Racer's picture

On item I buy a lot has just shot up 25% overnight!

Wed, 06/18/2014 - 16:49 | 4871056 messymerry
messymerry's picture

This is a total no-brainer.  From where the Talking Heads stand, food and gas prices ARE in the noise.  The poorest among them probably makes at least $200,000.00/yr..  For the rest of us poor saps struggling to get by on a tenth of that, f&g make up a significant percentage of our income. 

The Talking Heads - Listening Wind


Wed, 06/18/2014 - 16:52 | 4871065 TheRideNeverEnds
TheRideNeverEnds's picture
noise noiz/ noun noun: noise; plural noun: noises
  1. 1. a sound, especially one that is loud or unpleasant or that causes disturbance. "making a noise like a pig in a trough" synonyms: sounddinhubbubclamorracketuproartumultcommotion,pandemoniumbabelMore

    antonyms: silence
    • a series or combination of loud, confused sounds, especially when causing disturbance.

Disregard anything that goes counter to the actions of our masters at the FED for they are all knowing, all seeing and all powerful.  Anything to the contrary is therefore, by definition, just noise.  

Wed, 06/18/2014 - 16:55 | 4871077 MrSteve
MrSteve's picture

It is so much more refined to speak of "noise" rather than just adding hookers'nblow to the GDP fudge factor. Noise gets the data tortured into the politically correct confabulation the Fed believes we should believe.

Wed, 06/18/2014 - 16:55 | 4871079 QE Abyss
QE Abyss's picture

Calamity Jane strikes again....

Wed, 06/18/2014 - 17:03 | 4871098 Okienomics
Okienomics's picture

"We've determined that the Plebes with money are holding onto it with both hands, so we'll jack up food and fuel, extend our interest rate suppression plans and, once we're satisfied that the common folk are broke except for their meager 401k's, allow normalization of interest rates and equities to eradicate any capacity of the middle class to avoid debt slavery in perpetuity."

"Oh, did I just say that out loud?"

-Janet Yellen

Wed, 06/18/2014 - 17:04 | 4871102 B.J. Worthy
B.J. Worthy's picture

Every sentence she begins with "So..." is a lie.

Wed, 06/18/2014 - 17:09 | 4871120 Bastiat
Bastiat's picture

If the Secret Service test their new sarcasm detection sofware on zh it will burn up a few CPUs.

Wed, 06/18/2014 - 17:10 | 4871127 moneybots
moneybots's picture

"Still believe The Fed has inflation all under control?"


With a global debt bubble of 100 trillion, it is deflation that they don't have under control.


Bubbles deflate.

Wed, 06/18/2014 - 17:12 | 4871135 Herdee
Herdee's picture

Put interest rates up by 1% and the deficit climbs at least a trillion and you murder job growth. Boxed in are we? Just where is the U.S, Government going to get the tax revenue from in a basically low wage job economy? But if you print enough,you'd think that you'd get there eventually.But,is that working? NO!!!

Wed, 06/18/2014 - 17:51 | 4871225 Notsobadwlad
Notsobadwlad's picture

Food, Energy, Metals, Healthcare, Insurance, Education, Taxes, Regulatry Fees ... all noise.

The only thing that matters to inflation is the cost of electronics... and soon, electronics costs will be increasing as well because China has significant inflation and the RMB will strengthen.

Then how will they slant the lie?

Wed, 06/18/2014 - 18:16 | 4871301 Falconsixone
Falconsixone's picture

Would that be a good defence for the guy that blows her head off? It was just noise Judge Judy.Can I go to my mansion now?

Wed, 06/18/2014 - 19:49 | 4871665 d edwards
d edwards's picture

It isn't ignorance-it's wilfull deception.

Wed, 06/18/2014 - 21:15 | 4871885 realWhiteNight123129
realWhiteNight123129's picture

Noise is deafening right now.

Wed, 06/18/2014 - 22:32 | 4872135 AdvancingTime
AdvancingTime's picture

I contend the primary reason that inflation has not raised its ugly head or become a major economic issue is because we are pouring such a large  percentage of wealth into intangible products or goods. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.

The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.

It is important to remember that debts can go unpaid and promises be left unfilled. Is this possible and if so where would that leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years.  More in the article below.


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