Mainstream pundits regularly scoff at Peter Schiff when he insists that real inflation is higher than the official Consumer Price Index (CPI), but an AP report this week vindicates his position.
During a recent interview on MSNBC, Schiff insisted that money printing by the Federal Reserve has already created a lot of inflation. He also believes the Fed must continue its inflationary policies. But the host scoffed, disputing the notion that the introduction of all these new dollars is necessarily inflationary.
I feel this is the refrain we’ve been hearing from gold advocates for a long time, especially since 2008 – that inflation has to go up. But when we look at actual consumer prices, they’ve been very muted…”
Banks in Greece reopened on Monday, and even with strict withdrawal limits in effect, it at least gave the appearance of a return to normalcy. But Greeks also woke up Monday to a painful new reality that should serve as a warning to Americans.
Massive tax hikes went into effect, part of the austerity measures demanded by creditors in the latest bailout deal. As the AP reported, the increased taxes are another blow to Greeks already battered by years of economic crisis.
There are few parts of the Greek economy left untouched by the steep increase in the sales tax from 13 to 23 percent. The new rates have been imposed on basic goods, from cooking oil to condoms, as well as to popular services, such as taxi rides, eating out at restaurants and ferry transport to the Greek islands.
“The tax hikes are part of a package of austerity measures that also include pension cuts and other reforms that the Greek government had to introduce for negotiations to begin on a crucial third bailout.”
