This is a great cartoon depicting “Quantitative Easing Two” aka money printing.  The American economy continue to get life support with a dose of cheap digital money. The $600 billion package  is suppose to revive the economy and help lower unemployment rate. Its not working so far. Actually, it is making the economy worse!

The World Bank stated today that global food prices has hit dangerous level that could lead to further disruption around the world. The price of food increase 29 percent in 2010 and it is showing no signs of slowing down. Well Ben Bernanke is getting the job done and for all the wrong reasons. He wants higher inflation and he is making it happen. I wonder what it will take for the people in the US to wake up? Maybe the day when 80 percent of their income goes toward food and water like the Egyptians!

The politicians continue to paint a pretty picture over an ugly picture by showing how the economy is recovering with the unemployment rate dropping to 9 percent. It has nothing to do with QE II. This is due to seasonal hiring and more people becoming discouraged workers (stop looking for a job) and going on unemployment benefits. Since the Department of labor doesn’t count them, the numbers look better than usual.

According to the  Shadow stats web site, the real unemployment rate is around 23 percent. That is a depressing number! Higher inflation and unemployment is not a good combo. People’s purchasing power will decrease everyday and grocery stores will start closing down. Bernanke is playing with fire when it come to inflation and the best thing people can do is buy silver and gold as a hedge against inflation.

Be sure to buy a copy of my Gold and silver report if you haven’t done so already. The link is below.

Treasure Hunting for Precious Metals Stocks

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