The rise in commodity prices over the past several months has been unrelenting. Equally unrelenting has been the stream of central bank apologists aiming to re-direct the blame for soaring prices to almost everything imaginable except the real cause, which of course is unrestrained money printing.
Here is a chart that shows rising prices that cannot be blamed on bad weather, failed crops, global warming, a new ice age or sunspots. This chart of the S&P 500 Index shows a near perfect correlation to the Federal Reserve’s money printing, a/k/a “quantitative easing”.
The S&P Index and other stock indices like the Dow Jones Industrial Average are not rising because of better economic conditions or an improved outlook for economic activity. Stock prices are rising because of money printing, just like they did in the early days of the hyperinflations in Weimar Germany, Argentina, Zimbabwe and every other country ravaged by misguided government and central bank policies.
James Turk
Free Gold Money Report
Article originally published by the Free Gold Money Report.
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).. Copyright © by James Turk. All rights reserved.
Copyright © 2008. All rights reserved. Edited by James Turk
This material is prepared for general circulation and may not have regard to the particular circumstances or needs of any specific person who reads it. The information contained in this report has been compiled from sources believed to be reliable, but no representations or warranty, express or implied, is made as to its accuracy, completeness or correctness. All opinions and estimates contained in this report reflect the writer's judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.
