Antidotes to The Most Investment-Destructive Force

“[Fed Chairman Ben] Bernanke and the Fed have zero credibility… Bernanke has never been right about anything.

“We have inflation in the U.S., and it’s going to get worse.

“They’ve printed staggering amounts of money. They’ve taken staggering amounts of debt on their balance sheet. Much of it is garbage.

“Throughout history, when governments debase their currencies, you protect yourself by owning real assets.

“I’m not selling my gold by any stretch. The surprise with oil is going to be how high it goes.”

“Bernanke Has Never Been Right, Inflation Will Get Worse”

Jim Rogers, Moneynews.com, 4/27/12

Legendary Billionaire Investor Jim Rogers is right. The inevitable result of The Feds (and ECB and other Central Banks’), Printing Money in excess of any Real increase in the value of Goods and services, is Highly Inflationary.

But it is important to realize that it usually takes a few months for that Monetary Inflation to manifest itself as Price Inflation. But in the U.S., for example, (and elsewhere) it is already showing up as Inflation in Food and Energy Prices.

Indeed, the Real Numbers (as opposed to the Bogus Official Ones) show that the U.S. is already at a Hyperinflationary Threshold of 10.28%/yr per shadowstats.com.

Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider

Bogus Official Numbers       vs.      Real Numbers (per Shadowstats.com)

Annual U.S. Consumer Price Inflation reported April 13, 2012
2.65%     /     10.28%

U.S. Unemployment reported April 6, 2012
8.2%     /     22.2%

U.S. GDP Annual Growth/Decline reported April 27, 2012
1.62%        /     -2.17%

U.S. M3 reported  April 21, 2012 (Month of March, Y.O.Y.)
No Official Report     /     3.72%

Thus it is no surprise that inflation is already reflected in Key Commodities Prices.

Consider:

Copper

Like a Sugar High, Massive Central Bank Liquidity injections are boosting Economically Sensitive Commodities like Copper Short-term.

No surprise then that Copper is now bullishly Trending above its 120 day M.A.

And even though we expect periodic pullbacks, short-term, we expect Copper to Bullishly Rally for a while (see deepcaster.com for Forecast Timing and Targets), as the Central Banks-supplied Massive Liquidity works its way into the Economy via Higher Prices.
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