Inflation

A while back I posted a comment on inflation where I spoke of the situation in Zimbabwe Africa. I also spoke of the goals of the US government to create inflation so we would spend our money instead of saving it, thus stimulating the economy. They would do this by printing money. If you follow the news, you know what happened yesterday. The US FED announced it was buying $300 billion worth of US debt. How do they do this when they are already borrowing money to operate and are trillions into deficit? They create it out of thin air. If you noted what also happened, you will see that it had an immediate effect on inflation. The $US dropped dramatically against all other currencies, including the $CAN. Add to that the announcement that our (Canada's) latest inflation figures show that we are having an increase of living costs for the first time in 5 months. The rate is only 1.4% but watch it climb. Don't let anyone fool you into thinking that we are in a recessionary cycle. This is much more serious. The rally on the markets of late will be short lived. After all, the stocks that are being purchased are of companies that are doing poorly. Folks are just getting impatient. They do not like to get such low returns on their GIC's and term deposits so they are risking their money by playing the market, like they used to.

I will be the first to rejoice if and when I am wrong.