I see inflation as the only way out and I think the FED realizes this very well. So, in that regard, they're going to keep doing the only things they can do....issuing a lot of debt, and disguising inflation as well as they can. Remember, I think it was last year when the chief BLS economist was quoted by John Crudele in the NY Post as saying that the CPI does not accurately reflect increases in the cost of living. So as I have said, I think it's moving from that realm to the "Constant Price Index". In other words, it's going to get worse and I suspect that going forward even large increases in the cost of living will not be captured whatsoever in the CPI. In fact, I'll predict that no matter what really happens in the economy, the CPI will show a 2-3% increase annually. Never more than that. (CH)
Posted by 12:57 AM