Inflation is nothing to ignore, says John Kamin, economist of the Forecaster Moneyletter, in his latest release of predictions.
According to the release, a 0.4 percent Consumer Price Index has annualized a 4.8 percent inflation. Kamin gives the example that 55 years ago, silver was 91 cents an ounce and gold was $34 an ounce. These prices are a far cry from what we?re seeing today.
He explains that the Federal Reserve can push interest rates down, but that only pushes the U.S. dollar down so that it buys less.
China?s inflation is running over 7 percent per year, and those increases will be passed on to those who shop at Sears, Kmart and Wal-Mart, he says.
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