Sorry no link. Newsletter from my gold source.
Gold rose sharply, up $11 today, on the release of the higher than expected UK inflation data. It showed that UK inflation quickened to 26 month highs at 4.0%. Currency debasement and higher food and energy prices are leading to an inflation surge in both developed and emerging markets.
The world’s largest bond fund sharply cut its exposure to US government-related debt in January, before US bond yields rose this month to their highest level in almost a year. Pimco’s Total Return Fund, run by Bill Gross, a founder of Pimco, reported that its holdings of US government-related securities fell from 22 per cent in December to 12 per cent in January.
Inflation. What Inflation?
• Corn futures nearly doubled last year.
• Retail banana prices rose 21 percent.
• A pound of coffee cost $4.15 last year, up 13 percent from the year before.
• Duncan Donuts hiked coffee prices by 9 percent last year, and expects to hike another 10 percent this year.
• Orange juice futures doubled in 2010. An industry trade magazine predicts OJ will soon be a luxury item.
• Retail egg prices rose over 1 percent in 2010. The government projects a 2.5-3.5 percent rise in 2011.
• Retail bacon prices rose 17% in 2010. Retail apple prices rose 7.4% last year.
• The average gallon of milk rose 6.9% to $3.32 last year. The USDA projects a 5% rise this year.
• Wheat futures rose 35% last year.
• Retail cheddar prices rose 8.4% last year to nearly $5 a pound.
• Sara Lee has hiked prices for lunch meats.
• A carton of vine-ripe tomatoes jumped from $7 to $24 last year. A 60-year cold spell in Mexico is expected to double fresh produce costs in coming weeks.
• Sirloin prices rose 5% last year. Tyson says more hikes are coming.
• Although retail potato prices declined 6% last year in the U.S., prices doubled around the world.
• The Russian heat wave drove wheat prices up 47% last year. Miller-Coors plans to raise prices.
The White House projected Monday that the federal deficit would spike to $1.65 trillion in the current fiscal year, the largest dollar amount ever, adding pressure on Democrats and Republicans to tackle growing levels of debt.
The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again. In a new report entitled "Enhancing International Monetary Stability—A Role for the SDR", the IMF details the "problems" with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights). But the IMF certainly does not view SDRs as the "final solution" to global currency problems. Rather, the IMF considers SDRs to be a transitional phase between what we have now and a new world currency.
Ron Paul blasted the Federal Reserve in an appearance on CNBC star Larry Kudlow's show. Some economic observations from Paul: 'We have so much unemployment, it is so undercounted. The free market economists report that there is probably 22% of unemployment. They pumped in $4 trillion, they should have added a lot of jobs, but how much did it cost us, and that of course is the price inflation that will come. We are moving into another 30 year period where we are going to see a reversal of interest rates, and we are going to see a crashing of the bonds like we saw 30 years ago and it's going to last a long, long time. The Fed deserves the blame for the inflation, and for the unemployment.'
Old Yeller’s less precious cousin is continuing its recent tear, with Silver surging more than 3% on the Comex to close at $30.27/oz. Silver has gained about 13% since Jan. 25 and its close above $30 is considered technically promising. Silver has been up four straight sessions and seven of the last eight.