Glenn Beck on Fox thinks inflation is on its way, and here's the PPI for January 2009:
The Producer Price Index for Finished Goods rose 0.8 percent in January, seasonally
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This
increase followed declines of 1.9 percent in December and 2.5 percent in November.
Remember what Alan Greenspan said in The Economist over Christmas:
Even before the market linkages among banks, other financial
institutions and non-financial businesses are fully re-established, we
will need to start unwinding the massive sovereign credit and
guarantees put in place during the crisis, now estimated at $7
trillion. The economics of such a course are fairly clear. The politics
of draining off that much credit support in a timely way is quite
another matter.
When the banks start lending again, we are in for a massive bout of inflation.
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