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Gold coin investments are a practical way to beat inflation as we all know and regardless of what the Fed keeps saying.

February 09, 2011 – Gold coin investments are a practical way to beat inflation as we all know and regardless of what the Fed keeps saying, investors are slowly waking up to the fact that inflation is already here. You don’t need a degree in economics from Princeton to figure that out, so why does it elude the former chair of that school’s economics department? Frankly, I doubt it could.

When everything was going fairly well I can understand how the Fed’s gimmickry went unheeded. Fudging the inflation numbers by removing the two expenses that most directly impact our cost of living – food and energy – didn’t make all that much difference to the average American life. But it is different now. With budgets already stretched to the limit and incomes tracking the official near-zero inflation rate, Americans are paying for real inflation with lowered quality of life.

The Fed’s argument that only those factors over which it has control should determine inflation is as absurd as its claims that is has no control over the prices of food and energy. Bernanke is adamant that it is the growth of emerging economies that is to blame, and not the $1.5 trillion in bogus bills he has dumped into the market. But those emerging economies have been growing for years, and China’s has sustained growth for nearly four decades. Something big has changed, but that’s not it.

The Food and Agriculture Organization of the United Nations (FAO) tracks global food prices and publishes monthly indices. Is it only a coincidence that just six months after the Fed announced its stimulus plans the index is up an astounding and unprecedented 87%? Did I miss an explosion in the growth of Asian economies in that same period?

Real inflation is crippling the dollar. Only relative to the price of gold coins has there been no inflation in the cost of food and energy.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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