First Mining Gold Corp (FFMGF)

[Implanting]

The following is an excerpt from a Peter Schiff article dated Feb.20th.

Article titled: "CPI numbers show inflation already beyond Fed's benchmark"

"The rise in the cost of consumer goods (including energy) increased 0.6%, which is double the 0.3 estimate. Core inflation (excluding energy) was also up 0.3%. Another more important number was the year over year CPI, which has increased 2.5%, a core change of 2.3%.

We're already at the Fed's target number of 2% inflation, but the market reacted differently than one would expect. The market reacted to the news of higher inflation and rising interest rates by selling off the dollar and investing in gold, an atypical response, considering higher rates are generally more bullish for the dollar and bearish for gold.

Peter explains that this reaction is finally coming from investors calling the Fed's bluff and realizing that rate hikes won't be enough to offset the devaluation of the dollar from runaway inflation. What's more, Yellen really has no intention of raising rates because she and the Fed know it's a losing battle. The Fed can't raise rates enough to make a difference, that would throw the economy into a recession, yet they can't raise rates fast enough to combat the oncoming inflation. The Fed's own misguided policy has made them powerless to clean up their own mess."

This is Peter Schiff's take on the situation and I tend to agree with his views. The Fed is finally getting the inflation they desired, but now what can they do to hold it in check? I think this will be a problem for them going forward, but good for us as PM holders.