the USA inflation index is way-way-way out of line with reality.
here's a 1 degree of seperation proof...
Saudi Arabia
and Qatar, United Arab Emirates, all are experiencing greater that 10 % inflation because of their currency being pegged to the USD.
...Up till yesterday, 25 May 2008, when the USA gave approval to the UAR and Qatar to de-peg from the USDollar and create a basket of GCC (& possibly
the Euro among other currencies) in direct competion with the USA petrodollar
the UAE currency known as the AED, is currently worth .27+++ of a USD,
but in a short time look for the Forex (money exchange) to revalue the AED at somewhere near .40 cents on the dollar.
Look also for Chinese currency to appreciate in value. Slowly before the Olympics, but afterward ---Whoosh! the Chinese are losing over 12-16% value
on their USD & treasury holdings and they aren't going to abide that loss.
for present conversion values see the calculator that Reuters has available
www.reuters.com...
One has to understand the conversion rates are based on the false inflation reports stated officially by the US govt/treasury and the manipulation of
accounting by the Fed Reserve...
which puts domestic money inflation at 2.6% average for the last 8 years,
but the rest of the world is experiencing 7%, 10% and up ???
it just does not make sense !
