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| There are lots of ways of measuring inflation. The worst way – looking merely at consumer prices (CPI) – is what the government does. The best way is by looking at the size of the Federal Reserve monetary base. This shows you how much money is being created out of thin air.
Once again, those who tend to trust govt way to much in most things.......will tend to just look at the govt supplies CPI as the "bible"........apparently Warren B and other big money dont
The monetary base has basically doubled over the last year. But if you throw in all of the various guarantees the Fed is responsible for, the real size of the balance sheet has grown by a factor of 10. (The Fed is now guaranteeing more than $11 trillion of debt.) Folks who believe inflation is only measured by the CPI are about to learn an expensive lesson.
Simple measure of inflation – just watch the price of gold. Gold is the free market's money. The U.S. dollar is the world's reserve currency – the government's money. You can either participate in the government-led economy (by holding dollar-denominated assets) or you can keep your savings in the free market (by holding gold), and or other tangible commodities | |
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W.Buffett play for Bur N. Rail---total bet on Inflation
