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Jim Rogers: US, UK Are Lying About Inflation

Friday, 28 Jan 2011 12:45 PM

Most of the world's government recognize problems with rising inflation rates except for officials in the United States and the United Kingdom, who are lying when they say it isn't a problem, says investment guru Jim Rogers.

"There is inflation in the world. Anybody who shops knows there's inflation. Most governments acknowledge it — India, China, Norway, Australia, Taiwan," Rogers tells CNBC. "It's only the U.K. and the U.S. who say there's no inflation, but they lie about it."

U.S. Treasury Secretary Tim Geithner has said the U.S. economy is on the road to recovery and that while inflation is an issue for emerging-market economies, it isn't a cause for worry worldwide as of yet.

"I would not put inflation at the global level on the high list of concerns," says Geithner, according to the New York Times.

Bond markets, meanwhile, are paying attention to rising consumer prices.

Forecasters are expecting to see the spread between two-year and 10-year maturities on U.S., U.K. and German debt widen, which translates that expectations for higher inflation rates are rising, according to a Reuters poll.

"The market anticipates worsening news on inflation," Alan Clarke at BNP Paribas tells Reuters.

"Although interest rate hikes are some way off, particularly in the U.S., that will keep the 2-year yields anchored quite low. But the 10-year yields will pick up, and that will lead to steepening."

European Central Bank President Jean-Claude Trichet says policymakers will keep inflation in check.

"We will do what is necessary," Trichet tells Bloomberg Television.
"It is not by chance that we have delivered price stability. Our credibility is based on that doctrine."

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Most of the world's government recognize problems with rising inflation rates except for officials in the United States and the United Kingdom, who are lying when they say it isn't a problem, says investment guru Jim Rogers. There is inflation in the world. Anybody who...
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