We’ve been blessed with the recent deflation during this economic crisis. Prices have collapsed so that less strain would be placed on our wallets as jobs start to disappear. The government has been printing money like it is going out of style to prop up prices and bailout incompetent companies.

AP reported that wholesale inflation made the biggest jump in six months. The economists being cited in that article all expected less inflation than what actually happened. When are they ever accurate? They couldn’t see the financial crisis and said everything would be rosy. These mainstream economists are about as good as the weathermen.

These same economists also say, “despite the big jump in wholesale prices in January, economists do not believe inflation is on the verge of becoming a problem, given the country’s deep recession.”

I don’t see why anyone should believe them. They’ve been wrong and are still wrong.

With the low interest rates instituted by the Federal Reserve and the amount of reserves the banks are holding, inflation is not going to be kept in check. It might not explode in the short term but, inflation is coming. You cannot print money like a mad man and expect inflation to stay at bay.

By Tommy Leung

Tags: deflation, economic crisis, inflation, inflation problem, recession, wholesale inflation

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