“The proof of the pudding is in the eating.
(The real value of something can be judged only after it has been tried of tested)”
~ English Proverb
Written by Bryan Lutz, Editor at Dollarcollapse.com:
You know the ol’ saying, “The proof is in the pudding…”
Well, you can’t have proof without the pudding.
The pudding MUST come first.
In our case, that pudding is growth in global liquidity, and national money supply, and…
Yesterday’s CPI report is the proof.
Several days before the September CPI Report was released one could have predicted “hot” Core CPI.
I wrote about it in a message entitled, My Cup Overfloweth.
There were two graphs…
The first was showed the global liquidity cycle at roughly the bottom of the up curve, which still has a long way to go before it reached the top.
And the second, was a graph of the USD M2 Supply, which has been on the upswing since late 2023.
Then lastly, there is a maxim that many mainstream economists refuse to accept…increases in the money supply lead to inflation.
So, here we are…
Bloomberg reports:
Food and Shelter Costs Stoke Hotter-Than-Expected US CPI
“Both the headline and the core CPI, which excludes food and energy, came in 0.1 percentage point higher than forecast for the month, with a 0.2% increase in the headline index and a 0.3% rise for the core.
Food prices helped propel the headline figure, which came in hot even as gasoline and energy costs more broadly declined.
The core figure was driven by services costs.”
Inflation is headed back up.
Not to worry though…
Here’s one more example of pudding before proof:
US Debt.
US Debt and gold prices are highly correlated.
If you look at the lead up from 2005 to 2010, and then the blast off of US debt after Quantitative Easing was implemented in late 2007, then you could almost predict the parabolic rise of gold prices.
You can see another instance of US debt shooting up in 2020…
With more debt soon to come.
And that means, the rise of gold prices are most likely to follow. Along with the added accelerator of increasing inflation…
Proving the value of gold is already in the pudding.
