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Of all the various indexes out there the one were looking at here is referred to as the "Misery" index. Yes this is its actual name. The sum of the unemployment rate plus the rate of consumer price inflation equals the misery index. This index is now close to its all-time high. There are several major factors that are affecting its increase.

First off the ECB steadily giving into monetizing the majority of Europe’s debt. Next, The Bank of England recently passed a measure to monetize an additional 75 billion British pounds. They expect this will help ease their problems and of course will only make matters worse. The newest, we have comments coming from Helicopter Ben’s own minions Fed Governor Dan Tarullo that recently gave this statement. “I believe we should move back up toward the top of the list of options the large scale purchase of additional MBS” (Mortgage Backed Securities).

Anymore actions and comments such as these should not come as a surprise to anyone anymore. But rather seem par for the course. In the US, news regarding the Fed ready to start buying up large scale mortgages to me certainly is a clear signal QE 3 is just around the corner.   It seems that Mr. Tarullo’s comments are in complete agreement with his boss’s (Ben Bernanke) own views. There mindset is that the root causes of current economic conditions are high interest rates.

The reality being however that the interest rates have never been lower and allowing inflation to escalate will not repair the economy nor raise the standards of living for the majority of Americans. This is simply going to continue eating away savings and generate additional imbalances within the economy. Personal debt levels being too high and high rates of unemployment are reasons consumers these days are not able to buy houses along with home prices still being out of line with average incomes.

The Fed is trying to manipulate us every way possible. One plan is for the Fed to manipulate you into thinking inflation is right around the corner. Within the Fed’s arsenal you have real bullets such as QE 3 and once those bullets run out they will start using imaginary bullets such as manipulating expectations. The more the Fed continues down this path the closer we will come to a point where the dollars confidence is lost and the dollar collapses.

Make no mistake, the Fed is pursuing the dollars destruction and interest rates will rise relentlessly as inflation takes a stronger hold on the economy while wiping out whatever genuine growth actually still left in the economy. With this crisis so near to implementation it is best everyone be prepared before it strikes. Owning physical gold and silver are the best ways of protecting your assets and purchasing power during a major inflationary event and the eventual destruction of paper money.

Tom Genot –

About The Author:

For informational, news, articles and videos for investing in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot, provides information and resources helpful to everyone. Insure you’re prepared beforehand. Check us out at www.coinbullion.net