Jay Midnyte

Why do people focus on Consumer Price Index to judge whether there is inflation or deflation in the economy? The Consumer Price Index shows the change in prices for consumers excluding food and gas. The CPI shows the RESULT of the expansion or contraction of the money supply. It is a lagging indicator because prices do not suddenly skyrocket or fall when the FED decides to inject the economy with billions of dollars.

Inflation is the expansion of the money supply. Creating more dollars is inflation of the money supply. So why do deflationists argue that inflation is the rise in consumer prices?

Isn't higher prices for food, gas, and discretionary items a RESULT of inflation, not a cause? So what do deflationists think will happen to the dollar as the FED continues to provide trillions of dollars to prevent "systemically important" banks and entities from defaulting?

Find out who Jim Sinclair is here. He runs JSmineset.

After you read that, listen to Jim Sinclair in the interview below.

Jim Sinclair on King World News


Part 2


Part 3


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