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Report: Inflation on the horizon with Obama plan

January 23, 2009 by  

We could see inflation in the next yearThe U.S. is likely to face rapidly escalating inflation within the year, as the government moves to print money quickly, a new report suggests.

According to CIBC World Markets, the Obama administration will print money "at an unprecedented rate" to fund an economic stimulus package and address the growing federal deficit.

Jeff Rubin, chief economist and strategist at CIBC World Markets, compared the coming inflation crisis to that of Argentina in the late 1980s and Zimbabwe today.

He added that there is also an American precedent for driving up inflation by printing money. For example, inflation was in the double-digits in 1947 after a World War II deficit, while the periods after the Korean and Vietnam wars also showed similar effects.

Rubin predicted that although consumer price index inflation is currently falling, it could be at more than 4 percent within a year.

"Already the U.S. money supply is growing at a nearly 20 percent rate in the last three months and the printing presses are just warming up," he said.

December figures showed consumer prices increased by the smallest percentage in the past 54 years.

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  • s c mailen, Jr.

    Did Obama ever have any economics or history courses? If he did, he must have failed every one. You don’t need a bachelor’s degree, a master’s degree or a doctorate to know that our government is THE main source of constant inflation and waste in America.
    Once again, we are expected to endure the empty skills of the would-be elite, best-and-brightest crowd. Remember Korea? Remember Vietnam?
    Our economy is about to implode, yet once again we have elected a ‘leader’ who knows next to nothing about economics – or central banks – or history. He’s just another politician, folks. It’s going to be a LONG, L O N G 4 years.

  • grant lancaster

    obama”s agenda is to ruin the U.S.A as we know it and he is doing his part with flying colors eg border security finance the war effort and the drug war and the appointment of political freinds who are in no way intrested in looking out for the intrest of the country

  • John Woodbury

    I really no not know who to believe, one expert cries inflation and another deflation. All I know the U.S. Dollar is in free fall with no end in sight. Maybe the Obama Admin is looking to pay back trillions of debt with worthless money. China is not buying it and keeps the RMB close to the American Dollar, no matter what they say. I hope the Dollar can recover from it’s rough handling by the Chicago mob in the White House. Maybe it is time to elect non-lawyers,non-Ivy League-rs who have run large businesses well; they could not do any worse than what we have now. (of course many said that about Obama, and he proved them wrong)


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