The results of QE will be an increase in inflation down the line...

The results of QE will be an increase in inflation down the line.

I mentioned this in my post on the 1st of March 2010 in relation to my analysis of the effect of Quantitative Easing in the UK.

16th of February I noticed inflation was creeping up at 3.5 % in the UK.

CPI is now at 3.5% as of yesterday, from 3% in March.



Rates at some point will have to be hiked which will increase seriously the risk for a double dip recession. Not only banks balance sheets have been impaired but individuals balance sheets as well. Unemployment is as well on the rise as expected, as we move towards a stagflation a la "70s" style, as I previously commented on my blog.

It is all playing out.