Peter Shiff: "Oil and gas prices are high now for a very simple reason:"

"the U.S. Federal Reserve has gone on an unapologetic campaign
to push up inflation and push down the value of the U.S. dollar.

...James Bullard, the President of the Federal Reserve Bank of St. Louis,
stated this unequivocally.

...direct ...anger at Washington.

That is because higher gasoline prices are really a Federal tax in disguise.

The government's enormous deficit is financed largely by bonds
that are sold to the Federal Reserve,
which pays for them with newly printed money.

Those excess dollars are sent abroad where they help to bid oil prices higher.

...Because the Fed is likely to continue monetizing huge budget deficits,
Americans are going to be consuming a lot less of everything,
and paying a lot more for those few things they can still afford."


Graph of M1 Money Stock

No comments: