Pentonomics – Never any Doubts

February 1, 2011 at 11:39 AM

Today’s ISM report completely spells out the Fed’s true agenda.  The Purchasing Managers Index came in at 60.8%, however, the Prices Paid Component surged to 81.5! Bernanke is just too intelligent to believe deflation is the nation’s biggest concern. Perhaps his deflation argument is a red herring.

Just to give you a little anecdotal evidence that inflation is really becoming an intractable situation, my health care insurance premium from Horizon increased 15.5% from last year’s rate.

From energy, to commodities, to precious metals, to health care, to education; the evidence of rising inflation is all around him. But how can the Chairman of the Fed be so willfully blind? The truth is that Bernanke’s plan to bail out the housing market, state pension plans, the stock market and the national debt is to create a whole lot of inflation—and fast.

Most of those who adhere to the Austrian School of economics knew this all along. The implications for the dollar and commodity prices were never in doubt.

Michael Pento, Senior Economist at Euro Pacific Capital is a well-established specialist in the “Austrian School” of economics. He is a regular guest on CNBC, Bloomberg, Fox Business, and other national media outlets and his market analysis can be read in most major financial publications, including the Wall Street Journal. Prior to joining Euro Pacific, Michael worked for a boutique investment advisory firm to create ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE.