Insiders have already begun fleeing dollar-based investments.
Despite the Fed’s repeated proclamation that
inflation is “well contained,” the consumer price index surged 1.2% (14.4% annualized) in September, 2005, the biggest one month jump in 25 years, while
inflation at the wholesale level soared by the largest amount in more than 15 years.
Yet in reality, inflation may be much worse.
“In recent years, this gauge [the CPI] may have
understated the true pace of increase in
Americans’ cost of living.”
— The Economist;10/13/05
And, as reported by Bloomberg on October 3rd, 2005:
“Crude-oil prices are up more than 40
percent since May. Gasoline prices have more than doubled since December 2001. Natural-gas prices have more than doubled since May. Ocean
freight charges
are up more than 72 percent since early August.
Utility rates have risen by 13 percent in
11 months.”
“Rising energy costs are rapidly
spilling over into the prices of everything
from a bottle of Pepsi-Cola to a room at the
Marriott, sparking concern that such increases
are seeping into the pricing patterns of
companies, and may accelerate throughout
the economy.”
