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Could interest rates and inflation head violently higher?

*Dow Theory Letters, by Richard Russell, May 5, 2014

”The US public will swallow lies for just so long, and then the truth breaks through the barriers.  The public knows that ‘their’ inflation is more like 12% than the 1.2% that the Labor Department says it is.  The public is beginning to wake up to the fact that silver and gold are real money — pure wealth that has been respected for thousands of years.

Meanwhile the Fed is pumping trillions of dollars into the banking system in an attempt to push core inflation up to 2 percent.  The system absorbs all this liquidity, and actual ‘poor man’s inflation’ gradually increases.  But somewhere ahead (I think it will be this year) inflation will break out of its current bounds, and today’s ‘mild inflation’ will turn into hyperinflation.  That’s when interest rates will break out and head violently higher.  At that point the Fed will administer the only medicine it knows — more QE, more liquidity.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

Aftershock Investor