India-Reports.com: Inflation Watch

Inflation PPT Slide # 7

Inflation Powerpoint Slide # 7

Inflation Guide Slide 6: False Indicators ?

Inflation might be lurking in the background. Perhaps slide 6 of this Inflation tutorial will help you know what is what.

Inflation Guide Slide 5: Cause or Symtoms?

Inflation Survival Guide Slide # 5 Cause or Symtom?

Inflation Survival Guide Slide 4: Graph

Inflation Guide PPT Slide 4 - Money Supply and Prices

Inflation Guide Slide # 3 : It is about money supply

Inflation Survival Guide - coming soon

Slide 3

Inflation Guide Slide # 2 : You are about to learn

Introduction and Guide to Inflation: A 52 Slide PowerPoint Lesson

We are developing a presention on Inflation. The full presentation will be available on India-reports.com by August 1 2009. In the mean time you can see the work in progress.

Slide 1

Hyper Inflation Ahead? William Engdahl

Federal Reserve sets Stage for
Weimar-style Hyperinflation By F. William Engdahl, 15 December 2008

In response to the deepening crisis, the Bernanke Fed has decided to expand what is technically called the Monetary Base, defined as total bank reserves plus cash in circulation, the basis for potential further high-powered bank lending into the economy. Since the Lehman Bros. default, this money expansion rose dramatically by end October at a year-year rate of growth of 38%, has been without precedent in the 95 year history of the Federal Reserve since its creation in 1913. The previous high growth rate, according to US Federal Reserve data, was 28% in September 1939, as the US was building up industry for the evolving war in Europe.

By the first week of December, that expansion of the monetary base had jumped to a staggering 76% rate in just 3 months. It has gone from $836 billion in December 2007 when the crisis appeared contained, to $1,479 billion in December 2008, an explosion of 76% year-on-year. Moreover, until September 2008, the month of the Lehman Brothers collapse, the Federal Reserve had held the expansion of the Monetary Base virtually flat. The 76% expansion has almost entirely taken place within the past three months, which implies an annualized expansion rate of more than 300%.

Howard Ruff's Opinion on Inflation

The only way Congress knows how to try to fix an economic problem is to throw money at it. They create the money out of nothing. They vastly expand (inflate) the money supply to try to stop deflation, otherwise it could cause a 1930’s-type depression. One of the immutable laws of the financial universe is that when you expand the supply of a paper currency, you create monetary inflation. Often and sooner or later, this inevitably causes price inflation (currency dilution), with deflation in the interim. 

The politicians won’t even consider the only valid solutions. But I know how to profit from what is happening! When the government throws money at a problem, they eventually create monetary inflation. This flood of money dwarfs anything we have seen in our lifetimes.

If you understand that reality, you can now profit from the sure thing – monetary inflation.

One day we will wake up in the grip of huge price inflation. But as Will Rogers said, “Invest in inflation, it’s the only thing that’s going up.”

Update on Indian Economy

This from The DailyReckoning Decemeber 11, 2008

Yes, it's the planet's first Worldwide Depression. And the planet's first Worldwide Bailout. Now the meek are inheriting the world. The downtrodden are getting up off the ground.

The latest news from India tells us that the government is pumping $4 billion into the economy to try to pep it up. $4 billion may not be much to you…we're now used to trillion-dollar bailouts…but India is a poor country. A billion still means something.

The latest measure brings to $60 billion the total India has committed to the fight against the slump. Even that, say critics, will not be enough. But India is not in such a bad slump - at least, not yet. GDP is moving ahead at a 7% annual rate. Indians may be poor…but they have little debt…and they're getting less poor every day.

Our Indian colleague, Ajit Dayal, says India is in a good position:

"Our financial sector never went in for sub-prime debt. There is very little consumer credit in India. Inflation is going down; it's expected to be only about 1% next year. The economy is still growing fast. We have a huge domestic demand; we aren't as reliant on exports to the USA as China is. And our stocks are very cheap. You can buy companies in India now for less than the cash they have in the bank…and at 2…3…5 times earnings. There is even an oil company paying a 10% dividend. India will be just fine. And as soon as foreign investors realize it, Indian stocks will rise again."