But please keep in mind; this is what is
is known as a recovery in the
eyes of our government.
Thursday, April 14, 2011
Euro Pacific Capital
By: MIchael Pento
Surprise! Bernanke now has to make a difficult choice. Despite the Fed’s best laid plans, inflation is soaring but the housing and job markets are dead in the water. I have been warning from the start of Quantitative Counterfeiting that the economy, housing market and the unemployment would not significantly improve—however, inflation would become a significant problem.
Today we received data on Initial Claims and inflation. Producer Prices increased by .7% from February to March and jumped 5.8% YOY. Meanwhile, the number of individuals filing first time jobless claims jumped by 27k to 412k for the week ended April 9th. Significantly rising prices and an anemic job market are the products of the Fed’s desire to crumble the currency. One of the so called unintended consequences of bailing out the banks is the destruction of America’s middle class.
For example, the average price of regular gasoline at the pump rose 11 cents to $3.77 a gallon in the week ended April 10, according to AAA. It climbed to $3.81 yesterday, the highest since September 2008. Yep, the highest gas prices since the market and economy crumbled in the summer of 2008. Real incomes are falling along with consumers’ discretionary purchasing power. But please keep in mind; this is what is known as a recovery in the eyes of our government.
Michael Pento, Senior Economist at Euro Pacific Capital is a well-established specialist in the “Austrian School” of economics. He is a regular guest on CNBC, Bloomberg, Fox Business, and other national media outlets and his market analysis can be read in most major financial publications, including the Wall Street Journal. Prior to joining Euro Pacific, Michael worked for a boutique investment advisory firm to create ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE.