Posted By RichC on September 27, 2012
After three rounds of Federal Reserve quantitative easing and the pumping money into the system, the economy remains depressed and there is growing concern over eventual inflation. The buying power of the U.S. dollar is noticeably weaker for those with stagnate earnings — most of middle-class America. Who knows when government inaction on trade, deficits, debt and the “loose money” Federal Reserve policies will be reflected in the government measured indexes, but there is not much doubt that all Americans are starting to feeling the pinch when it comes to everyday necessities. Sure the “Arab Spring” and “drought conditions” will offer short term excuse for $4.00 gasoline and higher prices at the grocery store, but the reality of printing billions of dollars is going to raise the eyebrows of every armchair economist.
I probably don’t agree with everything doom and gloomers and gold bugs say, but in the reality of what is happening (or “not” happening") at the Federal level is fueling their case. Eric Sprott of Sprott Asset Management had a few thoughts on the subject this week on CNBC (mp3).
CNBC interview with Eric Sprott (mp3) — SiriusXM to iPhone Voice Memos app