$11 Trillion, Peter Munk, Warren Buffett = Inflation
posted on
Mar 09, 2009 05:02AM
SideNote: I've put together some tid-bits from recent news that tells me Inflation is on its way. GOLD WILL BE THE RAGE !! THE GRIM REAPER
March 5 (Bloomberg) -- U.S. government plans to spend more than $11.6 trillion to revive the economy are going to accelerate the pace of inflation and send raw-material prices surging, said Michael Pento, the chief economist at Delta Global Advisors who correctly predicted last year's commodity collapse.
By William MacNamara
Published: March 8 2009
“Gold is a small market, susceptible to small moves. Let’s say a small percentage of the world’s central banks – or simply the United Arab Emirates, by itself – do not believe President [Barack] Obama’s pledge that he will halve the US deficit by the end of his first term. They shift some of their dollar reserves into gold. It would not take many decisions of this kind to push the price above $2,000 per ounce.”
More important, he says, the global economy will recover but individual investors have been traumatised. “A feeling of insecurity is here to stay. The result is that the appeal of gold as a hedge has broadened enormously.”
WARREN BUFFETT ON INFLATION
"This debilitating spiral has spurred our government to take massive action. In poker terms, the Treasury and the Fed have gone “all in.” Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcome aftereffects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.