Inflation and Commodity Rally

“The government has created a massive increase in the monetary base, and it means we are entering a massive inflation cycle,” Pento said in a telephone interview from Holmdel, New Jersey. “Inflation will be intractable. All of these commodities will start to act as an alternative to currency and start to pick up. Gold should be the primary investment, and energy and base metals should be secondary.”¹

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Source:
1. Millie Munshi. Stimulus Cash to Spur Inflation, Commodity Rally: Chart of Day.
Bloomberg. March 5, 2009.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aIwFmyvJJiv4&refer=exclusive

© 2009 Michael Cale