QE3 Is Here
Despite encouraging economic news from the Democrat National Convention — QE3 has begun. The government has secretly begun another round of printing money. So get ready for more inflation.
Quantitative Easing is the creation of money. Although, the money is no longer even printed, but simply created on computers. The money is used to buy assets from banks and other financial institutions. Expanding the money supply is the definition of inflation. Inflation is a tax on every American.
QE1 and QE2 did not work! Monday, September 3, Jim Rogers co-founder of the Quantum Fund with George Soros, says that the Federal Reserve is secretly printing money. This is not good news for the consumer. Click Here for the article about Jim Rogers.
If that wasn’t bad enough, Ben Bernanke said the job market is still horrible. He stated in a speech last Friday in Jackson Hole that the country’s high level of unemployment (it climbed 8.3 percent in July) is a “grave concern” and that the “economic situation remains far from satisfactory.” Click Here for more about Bernacke’s speech.
The consumer Price Index reports that food was up 2 percent in July. America’s worst drought in half a century will push up inflation (could be as high as 5 or 6 percent) and put a fresh obstacle in the path of our struggling global economy. Blistering heat in the U.S. has destroyed 45 percent of the corn and 35 percent of the soya bean crop in the worst harvest since 1988.
Corn, soy and wheat have been hit the hardest with this summer’s record-breaking heal. Corn is a staple of processed foods and is in animal feed. Milk (and milk products: cheese, yogurt and butter), beef, chicken and pork are all expected to jump 5 to 6 percent next year. You can expect processed foods to cost more as well. That translates to an increase grocery bill of approximately $23 a week or about $100 a month for a family.
Counter Food Inflation
You’ll want to read my blog Cost of Food Up Again, Click Here. In addition to the three steps to saving grocery dollars in Cost of Food Up Again, you’ll want to stock up on beef and chicken now. Private label in grocery stores can offer a 30 percent savings, so you will want to look for savings that way as well.