Central Bankers Throw More Fuel on the Fire

May 15, 2008

Traders may be watching the US Consumer Price Index [CPI], but this
is an estimate that is continually adjusted, and is never really known.
Besides it is a national index which masks the serious problems in many
states.

There cannot be a +140% gain in the crude oil price in about 16
months without the costs being spread throughout the economy in the
form of costs of basic materials, transport, and all consumption items
as well as for driving personal vehicles. With this drag on the
economy, the central bankers’ solution is to throw more fuel on the
fire in the form of additional money printing.

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