this week the cpi (as understated as it is) came in at 5%. the takeover of indymac bank promises more inflation to come. james turk has done the analysis at goldmoney.com:

http://www.goldmoney.com/en/commenta...

briefly, the fdic has about $53 billion to insure all of the banks in the us. it will cost $4 to $8 billion just to handle the indymac failure. indymac had $18 billion of insured deposits, and supposedly $32 billion of assets. liquidating those assets will come up at least $4 billion short of $18 billion, which means they are worth 44 cents on the dollar. the worst case scenario, in which the fdic has to cough up $8 billion, implies that those assets are only worth 31 cents on the dollar.

those are alt-a mortgages, which indymac was dumb enough to keep in its portfolio (presumably they were smart enough to package and sell the even riskier sub-prime mortgages.) but if alt-a mortgages are only worth 31 to 44 cents on the dollar, you can bet there are a lot more bank failures to come. and indymac is just one bank, and it wasn't even on the fdic's list of nearly 100 problem banks.

so we can expect more bank failures, more monetization, more inflation, and higher metals prices.