Got Inflation?
If not, we soon will. This article may be the most important you read all year:
One of the most important questions of the day concerns how the dollar will fare in the coming months and years. If you are working for a wage, it is essential to know whether you should save or spend that money. If you have assets to protect, where you place those monies is vitally important and could make the difference between a relatively pleasant future and a difficult one. If you have any interest at all in where interest rates are headed, you’ll want to understand this story.
This is a complex topic, but Chris does a great job of making it understandable. It seems we may have an answer to the question of how we’ll pay for all this debt – by printing money to do it. This will eventually work its way back into the economy as inflation. God help is if China gets angry and suddenly stops buying t-bills. The jolt to our economy will be unpleasant to say the least.
September 3rd, 2009 at 10:46 am
More Glenn Beck type Federal reserve conspiracy theorists. Most economists agree that deflation is a greater threat.
September 3rd, 2009 at 12:55 pm
@Chuck – Most economists said there wasn’t a bubble. Most economists said that Keynesian economics wasn’t relevant until they began clamoring for “stimulus.”
The Austrians economists got it right – they predicted this crisis. See Peter Schiff, Thomas Woods, and others for details.
September 3rd, 2009 at 2:06 pm
Wrong. Nouriel Roubini, Dean Baker, Paul Krugman, Michael Mayo and others all warned of the coming bubble burst & recession as far back as 2005.
http://money.cnn.com/galleries/2008/fortune/0808/gallery.whosawitcoming.fortune/2.html
September 4th, 2009 at 11:20 pm
Lets do the math, shall we?
How much are YOU ‘on the hook’ for as a taxpayer?
What is your share of every trillion spent?
What is your TOTAL liability that the government has stuck you with?
Here are the simple facts.
There are ONLY 136M taxpayers.
1 T / 136M = $7353 per taxpayer–YOUR LIABILITY.
Remember that $800B Bailout from January? The one that nobody read but voted for anyway? The one that actually included $24T in new spending?
THAT BAILOUT BILL? And that $9T in deficit spending for current operations?
The GOVERNMENT IS SPENDING YOUR MONEY at the rate of a TRILLION DOLLARS A WEEK, and that means they are adding to YOUR tab at the rate of $7353 A WEEK… about $120k so far this year for every taxpayer. Thats spending money at a rate 100X faster than the wild spending of George II. If you do not have that kind of money or cannot finance it, then aren’t we all in real trouble? If they raise the tax rates to 100% (slavery) or 800% of of current salary, then this will NOT be enough to pay the tab. Lets now add into the mix the total unfunded liabilities of Medicare and Social Security, to the tune of $100T, and your share of this mess is in excess of $735,300. Thats BEFORE you buy a house or 2 cars or a college fund for the kids. The real problem with this is that to fund this, the government will suck all the capital out of the economy, and there will be no job for you, and no house and no cars and no college and no retirement. The government will never cut programs, so we can probably expect that it will inflate the crap out of its currency, so it can pay off its massive foreign debts with devalued dollars. We are on the slippery slope now, and no government has EVER survived the destruction of its currency. Since all inflation stems from the creation of fiat money by the government authorities, we can expect the inevitable hyperinflation to overtake us, we just do not know when. Cheers!!
September 5th, 2009 at 6:25 am
Glen – In other words, “Say hello, Zimbabwe!”
A massive devaluation of the currency is our ONLY way out.
I read a great book 20 years ago. I’ll give it to you in a couple of paragraphs and save you 300 pages of fluff:
This finance companies who control our treasury and our executive branch have one primary goal: economic integration with the rest of the world, with them in charge. The book predicted that the Dem and GOP parties would use their shared control over the Executive Branch of government to enact policies that would crush our economy in order to make global economic integration feel like salvation rather than enslavement.
Those who blame Obama forget that Tarp began under Bush and that it was Bush who held an emergency G-20 economic summit that concluded that we need a single global accounting system to prevent a future an economic collapse in the future. Obama is now implementing Bush policy that eliminate the Posse Comitatus Act (domestic deployment of active duty military) with at least 20,000 US troops already deployed within the US. That’s mainstream news, if you look for it.
So for all you folks who are seeking real change, here’s the most important heads up you’re gonna get right now: The drain plug on our economy has already been pulled. Our money has been channelled by government into the pockets of the same multi-national banks who have divested themselves from us. If you look closely at the markets you’ll find that virtually every “inside” investor (the big banks and finance houses) have been selling at a rate 20 times higher than they are buying. They’re bailing out hard and fast, and they’ve been doing so for six months.
The last official act of any government is to rob the people. The deed has already been done, folks. The mainstream media won’t tell you because the five corporations who own all of it have spent the last 30 years gradually setting up shop around the world. Their goal is ideological in nature rather than political: Global integration to create a global market under their control. They’ll adopt whatever political flavor they require in order to meet their objectives. Left/Right or liberal/conservative? These are tools to keep us focused on issues while in reality, our government is being transformed from bottom-up (by the people) to top-down (in control of the people).
And now we’ve crossed the Rubicon. A paradigm shift is coming and there is virtually no way to turn it back around. Our currency has already been decimated. The situation has simply not yet funneled it’s way back to the real value of our dollar. When it does, we’ll be no better off than Zimbabwe 18 months ago. Our debt may be paid off, but we’ll need to print 1 billion dollar notes to fill our gas tanks. That’s not an exaggeration. Zimbabwe now has a 1 Trillion dollar note that’s part of their daily currency.
We are not suffering from the results of the Obama Administration. We’re suffering from the results of successive GOP and Dem Administration who were all setting economic policy, foreign policy, and domestic policy with their eye on the prize: global integration. And the media has remained silent the whole time, until it’s too late.
Now they’re stirring us up (like Glen Beck) but they’re only providing half the truth. Why half? Because if we’re literally fighting, with each half blaming the other (Bush did this – Obama is our savior!!! v. Obama is doing this – we need the strength of Bush!!!) the ball keeps rolling.
But if we all wake up and realize that it’s taken decades worth of focused policy, working on legal harmonization of our domestic policies with Canadian and Mexican policies, working with dedicated teams on harmonizing our laws and standards with Europe, and much, much, much more, ….if we all collectively woke up and realized that we’ve been sold down the river for decades and we wouldn’t be here today if we had honest Constitutional leadership in either of the parties, then those holding the puppet strings would be screwed because we would collectively remove all of their puppets from both parties.
So now we’re told the problem, but we’re not being told the root cause. The divide is being grown more strongly than ever. 10 years ago a Russian professor and economist predicted that the US will be divided into about 6 separate nations by 2010. What do you think will happen once our economy becomes like Zimbabwe? (That’s GAURUNTEED to happen, btw – we’ve already crossed that threshold and are simply waiting for it to trickle back to us).
We’ll be bought up by Japan, China, Europe, Canada, Mexico, and possibly even Russia in Alaska. So the Russian professor wasn’t very far off in his timing, was he?
You see, the folks who desire a single economy under their control knew that their biggest challenge would be the US Constitution. The only way around it would be to make the people desire integration rather than sovereignty and the promise of individual liberty. How do you make that happen? You need to tear things down from the inside out, making everything seem so bad that any other system would be more desirable. Destroy the schools, destroy the economy, turn the government into villians, eliminate manufacturing, make healthcare unaffordable, etc etc.
And that’s where we are today. I can tell you right now that the only solution is to replace both political parties. But i can also tell you that we’ve been dealt a crippling blow already, and that removing both parties will not prevent conflict in the near future within this country. The finance powers have already sunk their teeth into everything in order to establish their global dominance. They won’t let it go without a fight.
Remember this: left/right is nothing more than a distraction from top-down. You can still lose the Constitution in a left/right stand-off. In a top-down v. bottom-up (by the people) stand-off, at least you’re fighting for our lawful foundation. Once that’s gone there is no more reason to fight.
God Bless – it may be our only hope.