Two Major Central Bank Insiders Just Gave a Clear Signal What’s to Come

Are you ready for inflation?

On Friday, both the Bank of England AND the US Federal Reserve made clear signals that they WANT inflation.

The Bank of England is prepared to tolerate higher inflation over the next few years and will keep interest rates low to support economic growth, according to Governor Mark Carney.

Source: Telegraph

In a further indication that the Federal Reserve will be inclined to let inflation run hot for a while, Chair Janet Yellen on Friday said it’s useful to consider the benefits of a “high-pressure economy.”

Source: CNBC

These two announcements hit the same day at roughly the same time. This was a coordinated verbal intervention by two major Central Bank heads.

Folks, this is as close as you can possibly get to a Central Banker literally telling you what to buy. Central Banks want inflation and have even signaled that they’re willing to let it run ABOVE their targets.

Let’s be clear… once inflation hits, it is almost impossible to control. It’s not as though the Fed can let the inflation genie out of the bottle and solve the issue in a month or two.

Inflation ALWAYS spirals out of control first.

Take a look at oil. The downtrend from the 2014 top has been broken.

Gold has also figured it out with a major multi-year breakout.

BIG inflation is coming. Less than 99% of investors have figured this out. Those who do will make absolute fortunes with the right investment strategies.

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About the Author: Tyler Durden

  • JohnDille

    INTEREST RATES AND INFLATION STRONGLY TEND TO DRIVE EACH OTHER UP… OR DOWN… FOR A VARIETY OF VERY IMPORTANT REASONS. THE HISTORICALLY LOW INTEREST RATES OF OUR DAY… WHERE INTEREST RRATES ARE VERY SIMILAR TO WHAT THEY WERE WAY WAY BACK WHEN I WAS YOUNG… MAKE IT DIFFICULT FOR THE RICH TO ROB ALL THE REST OF US BLIND… AND MAKE IT DIFFICULT FOR THE RICH REPUBLICANS WHO OWN AMERICA TO GENERATE THE KIND OF INFLATION THAT REPUBLICANS WANT TO GENERATE… IN ORDER TO INFLATE THEIR VAST WEALTH EVEN FASTER!!! INTEREST EXPENSES DRIVE INFLATION, WHICH DRIVES INTEREST RATES, WHICH DRIVE INTEREST EXPENSES, WHICH DRIVES INFLATION!!! KEEP INTEREST RATES LOW FOR A COUPLE OF DECADES… AND INFLATION WILL MOSTLY DISAPPEAR!!! COMMODITY PRICE SPIKES AND OTHER SUCH EVENTS WILL CAUSE SPIKES IN INFLATION… BUT THOSE SPIKES WILL QUICKLY DISAPPEAR, BECAUSE THRE WILL BE LITTLE INTEREST COST INFALTION TO KEEP THOSE SPIKES OF INFLATION ALIVE!!! LOOK AT THE YEARS WHEN DEMOCRATS RAN THINGS… THE 1930’S INTO THE MID TO LATE 1970’S…. DEBT AND INTEREST COSTS AND INFALTION AND INTEREST RATES WERE MOSTLY LOW… SO INFALTION SPIKED NOW AND THEN, MOSTLY BECAUSE OF WORLD WAR 2 COSTS AND THE IMPACTS OF THE MASSIVBE DEMOBILIZATION AFTER THE WAR… AND THE MASSIVE COSTS OF EMPLOYING AND HELPING 20 MILLION RETURNING VETERANS AND PEOPLE WHO LOST THEIR WAR RELATED JOBS!!! INFLATION SOARED… AND THEN DEFLATION HIT HARD… BUT THE EFFECTS WERE TEMPROIRAY BECAUSE THE COSTS OF CAPITAL… INTEREST EXPENSES AND IMNCOMES… AND DIVIDEND EXPENSES AD INCOMES… WERE VERY VERY LOW…. AND THUS THEY COULD NOT ACT TO DRIVE INFLATION, OR TO KEEP INFLATIONARY SPIKES ALIVE FOR VERY LONG!!! REPUBLICAN THEORIES OF INFLATION ARE MOSTLY CHILDISH BS… JUST LIKE REPUBLICAN THEORIES ABOUT PRETTY MUCH EVERYTHING IS CHILDISH BS!!!

  • JohnDille

    I AM PLENTY OLD ENOUGH TO REMEMBER WHEN SILVER DOLLARS AND OTHER SILVER COINS WERE THE PRIMARY MEDIUM OF EXCHANGE FOR MOST DAY TO DAY TRANSACTIONS! AND I TRULY MOURN THE LOSS OF THAT POWERFUL CULTURAL, SOCIAL, AND POLITICAL WAY OF LIFE. BACK THEN… A DOLLAR REALLY AND TRULY WAS A DOLLAR… IT WAS HARD TO EARN A BUCK… BUT IT WENT A LONG WAY!!! BUT THEN… REPUBLICANS BEGAN TO BECOME EVER MORE WEALTHY… AND POWERFUL… AND THOSE DAYS OF STABILITY AND LOW INFLATION BEGAN TO FADE AWAY, AS THE RICH REPUBLICANS GOT RICHER BY MANIPULATING THE NATIONS ECONOMIC AND SOCIAL AND POLITICAL SYSTEMS!!! AND ONE OF THE MANY IMPACTS OF REPUBLICAN MANIPULATIONS WAS… INCOME SHARES FOR THE VAST MAJORITY OF AMERICANS BEGAN TO FALL OR TO AT LEAST STAGNATE… WHILE INCOME SHARES FOR THE TOP 5%… BUT MOST ESPECIALLY THE TOP 1%… BEGAN TO SOAR!!! THE PEOPLE AT THE TOP CREATED VAST AMOUNTS OF WEALTH FOR THEMSELVES, BY MANIPULATING THE NATIONS ECONOMIC SYSTEM, AND TURNING EVER MORE WEALTH INTO PAPER… WHICH IN TURN GENERATED VERY SIGNIFICANT INFLATION AND HISTORICALLY HIGH INTEREST RATES… AND THUS, RAPIDLY RISING INTEREST INCOMES FOR THE RICH!!!! AND IT HAS BEEN THAT NET INTEREST INCOME THAT… ALONG WITH REPUBLICAN ATTEMPTS TO DRIVE DOWN WAGES, THAT HAVE MADE THE RICH SO POWERFUL!!! NOW THAT DEMOCRATS HAVE MANAGED TO REDUCE THE POWER OF THE RICH RATHER DRAMATICALLY, INFLATION HAS FALLEN ALMOST TO NOTHING!!! AND BOY OH BOY OH BOY, REPUBLICANS HATE THAT WITH A PASSION!!! THEY HATE OBAMA AND THEY HATE THE FED AND THEY HATE CENTRAL BANKS ALL OVER THE WORLD… BECAUSE IN NET EFFECT.. THOSE PLAYERS HAVE DRAMATICALLY REDUCED THE ECONOMIC CLOUT OF RICH REPUBLICANS… AND HAVE DRAMATICALLY REDUCED THE INCOME EARNED BY MANIPULATING THAT SYSTEM!!! NOW… THE DAMAGE DONE BY REPUBLICANS HAS BEEN ENORMOUS… AND IT WILL TAKE DECADES TO RID THE SYSTEM OF THE CRIMES AND PROBLEMS GENERATED BY REPUBLICAN POLICIES! BUT… WE HAVE MADE A MAJOR START… AND INCOME AND OTHER STATISTICS CLEARLY SHOW THAT!!! WAGES ARE STARTING TO RISE AGAIN… JUST LIKE THEY DID 50 YEARS AGO, WHEN DEMOCRATS RAN THINGS… AND GROSS AND NET INTEREST INCOME HAS FALLEN DRAMATICALLY… AND IF THAT CONTINUES FOR A FEW MORE YEARS, RICH REPUBLICANS WILL NO LONGER OWN AND CONTROL AMERICA! AND, IN A FEW MORE YEARS AFTER THAT… DEMOCRATS CAN MINT 25 DOLLAR SILVER PIECES AND 2000 DOLLAR GOLD PIECES… AND OUR KIDS AND GRAND KIDS CAN USE THOSE COINS WITH AS MUCH PRIDE AND AS MUCH SATISFACTION AS I USED THEM 50 AND 60 AND MORE YEARS AGO!!! GET FREAKING ARROGANT SELFISH REPUBLICANS OUT OF THE BLANK BLANK WAY, AND WE ORDINARY PEOPLE CAN TAKE CONTROL OVER OUR NATION, ONCE AGAIN!!! REPUBLICANS WILL SCREAM BLOODY MURDER… BUT WE WILL BE IN A POSITION TO PRETTY MUCH TOTALLY IGNORE THEM… JUST LIKE AMERICANS MOSTLY IGNORED REPUBLICANS BACK DURING THE GOLDEN AGE OF THE UNITED STATES… THE 25 OR SO POST WORLD WAR YEARS WHEN AMERICA RULED THE WORLD… AND KEPT RICH REPUBLICANS ON A TIGHT LEASH!!

  • JohnDille

    IT PROBABLY TOOK JUST AS LONG TO CONVINCE LESS INTELLIGENT WORKING PEOPLE THAT IT IS A GOOD THING TO WORK LIKE DOGS IN ORDER TO MAKE A HANFUL OF RICH REPUBLICANS EVEN RICHER AND MORE POWERFUL THAN THEY ALREADY ARE… BY SACRIFICING THEIR SELF INTERESTS FOR THE GOOD OF THOSE RICH AND POWERFUL REPUBLICANS! YOU SAY DEMOCRATS DO THE SAME THING???? NOT A FREAKING CHANCE… WHICH IS WHY RICH REPUBLICANS SPEND SO MUCH TIME AND MONEY AND EFFORT TRYING TO MAKE SURE THAT THEIR WORKING CLASS PUPPETS GET DUMB… AND STAY DUMB! AS LONG AS THEIR RIGHT WING BRAIN WASHING MACHINE KEEPS ON WORKING SO WELL, WORKING CLASS DEMOCRATS AND THEIR POLITICAL LEADERS WILL NEVER BE ABLE TO TAKE BACK THIS COUNTRY AND RETURN CONTROL OF IT TO ORDINARY PEOPLE!!! WHICH IS EXACTLY WHAT THE RIGT WING ELITE REALLY WANT!!! THAT STRATEGY WORKED HAS VERY WELL ON JOE CABOT… AND ON ALL THE OTHER MORON RIGHT WINGERS ON THIS… AND MANY OTHER… CHAT BOARDS!!! THEY ARE NOT BRIGHT ENOUGH TO REALIZE THEY ARE JUST PAWNS OF RICH REPUBLICANS… BENDING OVER WHEN THEIR MASTERS WANT THEM TO, AND PARROTING WHATEVER BS THEIR BILLIONAIRE MASTERS DECREE THAT THEY PARROT!!! CABOT WANNA CRACKER??? AWK!!!

  • Joe Cabot

    Mike Shedlock on inflation- “It’s taken years of economic brainwashing to turn ordinary people into parrots who believe that it’s a good thing to get less for your money”.

  • TJH41

    You Can’t have inflation by raising the interest rate, then say your going to keep interest rates low, it won’t work….