Rising Food Prices Propelling Inflation Worldwide, Special Report by Profit Confidential

New York, New York (PressExposure) February 21, 2012 -- Popular financial newsletter Profit Confidential reports that global food prices jumped 1.9% in January around the globe, the biggest monthly gain in 11 months. According to Michael Lombardi, lead contributor to Profit Confidential, things are going to get worse.

"At a time when economic growth worldwide is slowing, citizens around the world are hampered in their spending because their personal budgets are being 'eaten' away by higher food prices," says Lombardi.

While in the U.S., food costs account for less disposable income than in developing countries, Lombardi points out that low-income earners here in the U.S. don't have that luxury: "Their food costs, as a percentage of income, are comparable to developing countries."

Chinese inflation rose 4.5% in January, which Lombardi highlights as much higher than expected: "The main culprit for the rise of inflation was food inflation, which surged 10.5% year-over-year."

Lombardi outlines what happens if the Federal Reserve embarks on QE3 to spur economic growth: "This will result in a fall in the value of the U.S. dollar against other world currencies, which will cause all commodities, including oil and food prices, to rise, because they are priced in U.S. dollars."

The government has increased its debt by approximately $5.0 trillion in four years, which worries Lombardi, "No country can issue so much debt and create so much new money without creating inflation. History has proven this."

This is the reason Lombardi has called for higher gold bullion prices, which have risen 470%.

"As the economy slows further in 2012, as the Fed unleashes QE3 to deal with the softening economy, gold prices again rise with inflation," says Lombardi.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

Press Release Submitted On: February 21, 2012 at 7:04 am
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