By John Galt
July 18, 2011
The headline from this morning’s New Zealand newspapers like ThePress says it all:
Inflation hits 21-year high
With a 4.5% inflation rate and a projection that it will go much higher as the nation recovers from those horrific earthquakes earlier this year, it is little wonder that importing inflation from the bankrupt financial systems of the world is the last thing they need as the country rebuilds. This chart created with the official data from the Royal Bank of New Zealand shows a C.P.I. on a parabolic rate of climb which could well require drastic interest rate increases to bring it under control:
Too bad our central bank can not be as brutally honest or succinct about the severity of the inflation problems in our own nation. Don’t worry my friends in New Zealand, I have it on good authority per our central bank that those price increases are not real but only “transitory.”
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