Article Image
News Link • Economy - Economics USA

Look How Much Less Americans Can Afford Now Compared To Six Years Ago

•, Rob Wile
 In oil markets guru Stephen Schork's latest report, he takes issue with the Federal Reserve's recent argument that inflation is going to remain subdued.

It is true that core inflation — all prices excluding food and energy — has not spiked.

But the "wealth effect" that Chairman Ben Bernanke is hoping to create by causing the value of assets like stocks to rise will be outweighed by everyone panicking about their grocery and electricity bills going up.

By pouring more and more dollars (albeit, electronically) into the economy, investors will not only be encouraged to own paper assets like stocks and bonds, but they will also want to own dollar-denominated hard assets; be that gold, cocoa, coffee or, yes, oil.

[But] the cost is far outpacing wealth for the average consumer.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: