Inflation, A Rider on a Black Horse

... and behold, a black horse! And its rider had a pair of scales in his hand.

And I heard what seemed to be a voice in the midst of the four living creatures, saying, "A quart of wheat for a day's wage, and three quarts of barley for a day's wage.....

Revelation 6:5-6

Commentary: The context of this passage is that prices had risen to levels 10 times higher than normal .

Loonie Loses 3% as Traders See Carney Pushing Quantitative Ease
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By Chris Fournier
April 6 (Bloomberg) -- Foreign-exchange traders are stepping up bets Bank of Canada Governor Mark Carney will join Japanese, Swiss, U.K. and U.S. central bankers and dilute the nation’s currency by embracing quantitative easing.

Flaherty turns his sights on inflation

Economy likely to 'accelerate' from 'mild' recession, spurring price hikes

Finance Minister Jim Flaherty said Friday the Canadian economy is likely to "accelerate" out of what he deemed a "mild" recession -- although warning that the next problem policy-makers may face is inflation.
http://www.canada.com/business/fp/Canada+next+problem+inflation+Flaherty/1460660/story.html

Commentary: We have entered an uncertain time. Several senior officials in the G8 have expressed concern over inflation including Jim Flaherty and Ben Bernanke.

Chairman Ben S. Bernanke said yesterday in Charlotte, North Carolina that the Fed must retain the flexibility to withdraw its record cash injections to restrain prices. Vice Chairman Donald Kohn said in Wooster, Ohio, “the trick will be unwinding this balance sheet in a timely way to avoid inflation.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAHINzVhyplM

April 3 (Bloomberg) -- Gold may rebound next week on speculation rising prices will revive demand for the precious metal as a hedge against inflation.
Twelve of 17 traders, investors and analysts, or 71 percent, surveyed by Bloomberg News said gold would climb. Four people, or 24 percent, forecast lower prices and one was neutral. Gold futures for delivery in June are down 2.1 percent this week to $906.1 an ounce in New York.

http://www.bloomberg.com/apps/news?pid=20602013&sid=a5MAK3TCGlTU&refer=commodity_futures

Commentary: The problem with dumping large amounts of fiat currency into the money supply is to know when to stop. When do these volumes of currency offset the deflation created by large amounts of defaulted debt?
The formula for inflation is very simple - increase money supply and increase the velocity of money (spend it faster).
Does Flaherty know when to stop?
Does Bernanke?
Are they getting worried?
I do not claim to have those answers. All I know is that gold is looking more attractive than ever. Its most attractive feature is that policitians and central bankers can't debase it by quantitative easing!