Wednesday, June 29, 2011
Saturday, June 25, 2011
Monday, June 20, 2011
Friday, June 10, 2011
Wednesday, June 8, 2011
Thursday, May 26, 2011
Thursday, April 28, 2011
Energy and Food Inflation and Ben Bernanke
Food and Energy Inflation is Not Transitory
Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the Fed Funds Rate at a record low of 0% to 0.25%, where it has been for an unprecedented 28 months. The U.S. economy is flooded with U.S. dollars and is close to overdosing on excess liquidity. The fact that our financial markets are not falling on the possibility of the Fed not unleashing QE3 immediately at the end of QE2, shows that we could be on the verge of hyperinflation with or without QE3.
Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the Fed Funds Rate at a record low of 0% to 0.25%, where it has been for an unprecedented 28 months. The U.S. economy is flooded with U.S. dollars and is close to overdosing on excess liquidity. The fact that our financial markets are not falling on the possibility of the Fed not unleashing QE3 immediately at the end of QE2, shows that we could be on the verge of hyperinflation with or without QE3.
The Federal Reserve currently has a mandate of both maintaining price stability and facilitating job creation. However, central banks don't have the ability to create real employment. If any jobs happen to be created as a result of a central bank's policies, they are only temporary jobs created due to the errors and distortions of phony asset bubbles. All phony asset bubbles that are fueled by monetary inflation eventually burst, sending unemployment through the roof.
Almost every major central bank besides the Federal Reserve, understands the truth about job creation, and has a mandate that focuses solely on keeping price inflation low. The Bank of Japan, Swiss National Bank, Bank of Canada, and Bank of New Zealand, all have mandates that are entirely about low inflation and don't even mention the creation of jobs or the rate of employment. Bernanke said on Wednesday that, "while it is very, very important for us to try to help the economy create jobs and to support the recovery, I think every central banker understands that keeping inflation low and stable is absolutely essential to a successful economy."
Bernanke has decided to go down a route that no central banker has ever gone before. Bernanke has literally invented countless ways to create inflation that nobody else has ever thought of. If keeping inflation low was ever Bernanke's slightest concern, the Fed Funds Rate would currently be north of 5% and the U.S. economy would be in a steep recession. Bernanke has never once thought about keeping inflation low. He has literally implemented every measure he could possibly think of to create as much inflation as possible, while outright lying to the American public and saying that he isn't printing money and that inflation is under control.
Bernanke would like the public to believe that his policies of expanding the money supply through cheap and easy money will cause the U.S. economy to recover and unemployment to decline back to pre-crisis levels, and that right before price inflation spirals out of control, he can raise interest rates and prevent massive price inflation without disrupting the recovery. Unfortunately, this is impossible because the recovery isn't real and massive price inflation is already here. Bernanke's policies may have created 1 million artificial jobs since December of 2009, after 8.75 million jobs were lost in the previous two years, but he did this at the expense of 310 million Americans already seeing double-digit percentage increases in food and energy prices.
Since after the Real Estate bubble burst in late-2008, the primary economic concern of Americans has been finding a stable job in order to make mortgage payments and put food on the table. Under the pressure of Congress, the Fed printed enough money to prevent a much needed recession that would be healthy for the long-term U.S. economy. In its attempt to reinflate the Real Estate bubble, the Fed has been destroying the free market and creating new economic distortions, which caused an artificial bounce in the rate of employment. Unfortunately, when you add together the money the Fed has either printed or committed for bailouts and stimulus programs, over $4 million has been spent for each job created. The Fed would have been better off just crediting the bank accounts of unemployed Americans with the average U.S. income.
When asked about rising gas prices, NIA is very happy that Chairman Bernanke acknowledged that gas prices "have risen quite significantly" and are "creating a great deal of financial hardship for a lot of people". Bernanke admitted that gas is a "necessity" as "people need to drive to work" for the artificial jobs Bernanke created at a cost of $4 million per job. However, Bernanke seemed to be confused when he said "higher gas prices add to inflation". The truth is, Bernanke's zero percent interest rates and quantitative easing are the inflation, and inflation leads to higher gas prices.
Bernanke is directly responsible for gas prices rising back to $3.87 per gallon, yet refuses to admit it. Bernanke placed the blame on the growing global and emerging market economies, and their strong demand for oil. He said that America's demand for oil is going down, which NIA believes is actually due to the U.S. dollar losing its purchasing power and Americans seeing their standard of living decline. Bernanke said there is nothing that he can do about rising oil and gas prices "without derailing growth entirely". The truth is, Bernanke already derailed growth entirely when he derailed the free market. It is impossible to see real economic growth when a government and central bank is interfering in every aspect of the economy and impeding the free market in every possible way. All nominal GDP growth in the U.S., along with growth in retail sales, is solely due to inflation. Even when the government adjusts GDP and retail sales growth to the rate of inflation, it is based off of the consumer price index, which NIA believes is currently understating price inflation by approximately 4%.
Although Bernanke denies he has the ability to reduce gas prices, he claims he can prevent "gas prices from passing into other prices and wages throughout the economy and creating a broader inflation which will be much more difficult to extinguish." Bernanke obviously doesn't want Americans to see higher wages because he believes it could lead to broader inflation, but NIA believes rising wages would be a good thing. Inflation hurts Americans most when the rate of inflation is far outpacing wage increases. The fact is, the U.S. is already experiencing broad inflation even without wage increases.
Bernanke's brand new favorite word as of late seems to be "transitory", which he used about a dozen times during his press conference. Despite what Bernanke says, NIA strongly believes that rising food and gas prices are not transitory. Bernanke likes the word "transitory" because he can use it to try and pretend that rising food and gas prices are only just a temporary phenomenon and that their current high levels aren't here to stay. Many Americans can remember the day 40 years ago when a can of Coca-Cola cost a dime and a Hershey chocolate bar cost a nickel, with a gallon of gas back then costing only thirty-five cents. Have rising food and gas prices over the past four decades been transitory?
NIA first predicted two years ago in its documentary 'Hyperinflation Nation', that rising food and gas prices would soon become the primary concern of all American citizens as a result of the Fed's dangerous and destructive monetary policies. Bernanke back then claimed that inflation would not be a problem and said that the U.S. risked deflation. If Bernanke has been so wrong about the inflation that Americans are faced with today, NIA doesn't see how anybody can possibly believe that Bernanke will be right and that current high food and gas prices aren't here to stay. In our opinion, the food and gas price inflation that Americans have experienced over the past 40 years, is likely to occur all over again during the next 4 years. NIA believes that 4 years from now, Americans will look back at the good old days of having cheap $4 a gallon gas.
The last thing the U.S. government wants is for the American public to realize that Bernanke is responsible for rising food and gas prices. If the public demanded to end the Federal Reserve, the government will no longer be able to spend recklessly knowing that the Fed will be there to monetize their deficit spending. In an attempt to make up excuses for rising gas prices and deflect attention away from the Fed, Congress has been pressuring the U.S. Attorney General to investigate the matter. Attorney General Eric Holder just announced the formation of the Oil & Gas Price Fraud Working Group. The stated purpose of this working group is to monitor the oil and gas markets for potential violations of criminal or civil laws to safeguard against unlawful consumer harm.
NIA considers this to be complete insanity. Any government interference in the oil markets will only drive oil prices up even higher. Oil prices are rising solely do to supply and demand. Demand is going through the roof because the Federal Reserve is creating a lot of inflation, and inflation always gravitates to the goods that Americans need the most to live and survive. Oil supplies are falling because President Obama has ordered U.S. troops to occupy Libya. In the past we at least made up excuses to invade countries like Iraq over oil by claiming they had weapons of mass destruction. Today, the U.S. government doesn't even bother. Obama campaigned as an anti-war President, saying he would bring our troops home from the middle-east. Instead, he has increased our middle-east troop levels, and the sheep who voted for him are showing absolutely no signs of outrage.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
Are you just like a member of Al-Qaeda
Posted: 27 Apr 2011 08:14 PM PDT
Are you against raising the debt ceiling? If so, according to former Bush Treasury Secretary Paul O'Neill you are actually part of al-Qaeda. Yes, seriously. During an interview on Bloomberg TV the other day, O'Neill actually made the following statement: "The people who are threatening not to pass the debt ceiling are our version of al-Qaeda terrorists. Really. They're really putting our whole society at risk by threatening to round up 50 percent of the members of the Congress, who are looney, who would put our credit at risk." For a high ranking Bush administration official to equate Tea Party activists with al-Qaeda is extremely frightening. Just remember what the Bush administration did to anyone supposedly associated with al-Qaeda. They shipped them off to Guantanamo Bay and waterboarded them into oblivion. It also shows how out of touch the Bush administration really was with the conservative base of the Republican Party. The Bush administration ran up record setting deficit after record setting deficit and now any conservatives that dare to want some assurances that we are actually going to do something about our rampant debt problem are labeled as "al-Qaeda terrorists". Of course the Obama administration is essentially doing the exact same thing. The current Treasury Secretary, Timothy Geithner, has been running around frothing at the mouth and declaring that we are going to experience financial armageddon if the debt ceiling is not raised. This whole episode is yet another example that shows what a fraud the false left/right political paradigm in this country really is.The debt ceiling is one of the only points of leverage that the Republican-controlled House of Representatives has available. If the Republicans want to make a stand on the national debt, they need to do it somewhere. John Boehner already caved badly when it came to the 2011 budget. The Republicans are running out of opportunities to make a statement before the 2012 election.
Not that Boehner and the rest of the "establishment Republicans" are much interested in seriously cutting the budget. If they were, they would have done it during the Bush years.
But there are millions of Americans (and a few members of Congress) associated with the Tea Party movement that are deeply troubled by our soaring budget deficits and that desperately want something done before it is too late.
If the U.S. government keeps running up debt like it is right now, it is going to completely destroy our economy. America has a debt problem unlike anything ever seen in the history of the world. If left unchecked, it is going to destroy the economic future of our children and our grandchildren.
Something needs to be done.
Yes, if the debt ceiling is not raised, the financial world will throw a fit. There may even be a bit of a panic. But you can't really blame those associated with the Tea Party for wanting some assurances about getting the debt under control before agreeing to raise the debt ceiling yet again.
Our national debt is a horrific national crisis. It threatens to destroy everything that our forefathers built.
But members of the political establishment such as former Treasury Secretary Paul O'Neill don't have much patience for those that want to question the status quo.
Look, when any member of the Bush administration uses the words "al-Qaeda" in relation to a group of people you need to pay careful attention.
Do you remember how the Bush administration treated anyone that was accused of being part of al-Qaeda? The following are some of the kinder things that they would do to them according to official U.S. government memos....
*Forced nudityThere are a lot worse things that they would do to "members of al-Qaeda" but they cannot be printed in this space.
*"Walling", which is slamming a prisoner into a wall
*"Cramped confinement" which means "placement of the individual in a confined space"
*Stinging insects placed inside "a confinement box"
*Waterboarding - one of the memos actually admits that "the use of waterboarding constitutes a threat of imminent death"
*Sleep deprivation for several days
*Sleep deprivation while wearing a diaper
*The use of "stress positions" to cause "muscle fatigue"
*"Dietary manipulation"
*Facial and abdominal slapping
So when Paul O'Neill says that you are part of al-Qaeda, let's just say that he does not plan to invite you out for a Sunday picnic.
This is yet another example of how dirty politics in America is becoming. Liberals hate conservatives and conservatives hate liberals. They both hate libertarians and libertarians hate them. America is a deeply, deeply divided nation and hatred and bitterness are growing at a staggering pace.
Meanwhile, the U.S. government is absolutely drowning in debt and the plans put forward by both the Democrats and the Republicans are total jokes. Nobody seems to have any idea how to get out of this mess.
We have accumulated the largest mountain of debt in the history of the world and we expect our children and our grandchildren to pay it off.
What we have done to future generations is absolutely inexcusable.
In a previous article on U.S. government finances, I detailed some absolutely horrifying statistics about U.S. government debt....
#1 If you divide the national debt up equally among all U.S. households, each one owes a staggering $125,475.18.
#2 The federal government has borrowed 29,660 more dollars per household since Barack Obama signed the economic stimulus law two years ago.
#3 During Barack Obama's first two years in office, the U.S. government added more to the U.S. national debt than the first 100 U.S. Congresses combined.
#4 In the new budget that the Obama administration has proposed, the U.S. government would spend 3.7 trillion dollars in 2012 and by 2021 the U.S. government would be spending a whopping 5.6 trillion dollars per year.
#5 The U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends.
#6 The total compensation that the federal government workforce earned last year came to a grand total of approximately 447 billion dollars.
#7 The U.S. national debt is currently rising by well over 4 billion dollars every single day.
#8 The U.S. government is borrowing over 2 million more dollars every single minute.
#9 The U.S. national debt is over 14 times larger than it was just 30 years ago.
#10 Unfunded liabilities for entitlement programs such as Social Security and Medicare are estimated to be well over $100 trillion, and nobody in the U.S. government seems to have any idea how we are actually even going to come close to meeting all of those obligations.
#11 If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now. But this year alone the U.S. government is going to go about 1.6 trillion dollars more into debt.
#12 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
You would think that our politicians would be working night and day to solve this problem.
But instead, anyone that is actually serious enough to want to pause before raising the debt ceiling again is called an "al-Qaeda terrorist".
Even if you are against the Tea Party and in favor of raising the debt ceiling immediately, you should still be extremely concerned when a former high ranking member of the government equates a group of Americans with "al-Qaeda" just because of their political beliefs.
Our country is being transformed. Liberty and freedom are dying. Today, when Americans are concerned about the national debt they are called "terrorists", but when our women and our children are sexually molested at "security checkpoints" it is called "patriotic".
Wednesday, April 27, 2011
Monday, April 18, 2011
Sunday, April 17, 2011
Monday, April 4, 2011
MARCH 11-23 EVENT?! Signs and Evidence
This lady predicted the Japan earthquake before it happened. This was uploaded to her page on March 08,2011
Thursday, March 31, 2011
Sunday, March 27, 2011
Saturday, March 26, 2011
Friday, March 25, 2011
Sunday, March 20, 2011
Sunday, March 13, 2011
Friday, March 11, 2011
Thursday, March 3, 2011
Wednesday, March 2, 2011
Inflation Is Here – Just Open Up Your Eyes And Look At These 5 Financial Charts!
I hope this article and video will make people realize how bad things are presently and how much worse they are going to get. Please, wake up. Invest in silver if you can. Buy food and water now to stock up to feed your family for a minimum of six months and have a firearm in your home to defend yourself, family and food. A huge crisis is coming within the next couple years and the dollar will fail. Please read the following article from http://theeconomiccollapseblog.com
Inflation Is Here – Just Open Up Your Eyes And Look At These 5 Financial Charts!
Despite what Federal Reserve Chairman Ben Bernanke says, rampant inflation is officially here. The federal government is constantly monkeying with the numbers to keep the "official" rate of inflation below 2 percent, but it is becoming very difficult to deny that the cost of almost everything is really going up these days. The American people are not stupid. They notice the difference when they go to the grocery store or stop at the gas station. The dollar is losing value rapidly now. The price of gold set another new all-time record today and is currently hovering just above $1430 an ounce. The price of West Texas crude has moved above 100 dollars several times recently and the price of Brent crude is currently above 116 dollars. These higher oil prices are really starting to be felt in the United States. The average price for a gallon of gasoline in the United States has now reached $3.38. There are some gas stations in the U.S. where the price of a gallon of gas is already over 4 dollars. But it is not just the American people that are feeling the pain. The global price of food recently hit a new record high and almost every major agricultural commodity has absolutely skyrocketed in price over the past 12 months. Meanwhile, Ben Bernanke just told the Senate Banking Committee that he really isn't concerned about inflation at all.When it comes to inflation, the key is not to look at the official U.S. government numbers (they are highly manipulated) or how the U.S. dollar is performing against other major currencies (because they are all being devalued as well). Instead, you can get a truer sense of what is really happening to inflation by looking at what the U.S. dollar is doing against precious metals, commodities and other hard assets.
So are we experiencing rampant inflation right now? Well, just open up your eyes and look at these 5 charts....
1 - The price of oil is racing back up to record levels. The chart below from the Federal Reserve is a couple weeks out of date. As noted above, the current price of West Texas crude is about $100 a barrel....
Unfortunately, the global price of food has gone up substantially in recent months and it is likely to keep going up very rapidly. Just consider the following five facts....
#1 The United Nations says that the global price of food hit another new all-time high during the month of January.
#2 The price of corn has doubled in the past six months.
#3 The price of wheat has roughly doubled since the middle of 2010.
#4 According to Forbes, the price of soybeans is up about 50% since last June.
#5 The United Nations is projecting that the global price of food will increase by another 30 percent by the end of 2011.
Ouch.
But isn't there some good economic news?
Yes, there is, but before we cover it, it is important to keep in mind that in an inflationary environment almost all economic numbers go up.
For example, during the recent hyperinflation in Zimbabwe stocks went up like crazy and "economic growth" statistics were very impressive.
Why?
Because those numbers were measured in currency units that were being devalued at a blinding pace.
So please keep that in mind when you hear "good economic statistics" on the evening news.
The truth is that in an inflationary environment such as we have now entered into almost all economic numbers should be going up.
So what is the good news?
Well, last month all three major U.S. car companies reported strong sales gains. Sales of GM vehicles were up 49%, sales of Chrysler vehicles were up 13%, and sales of Ford vehicles were up 10%.
But just because a few pieces of good economic news come floating our way does not mean that we should forget all of the horrific long-term economic trends that are tearing this country apart.
The truth is that we are still a nation that is absolutely drowning in debt.
For example, it was just announced that China now owns 1.16 trillion dollars of U.S. government debt.
The borrower is the servant of the lender. We should never forget that.
Also, the U.S. economy is slowly but surely becoming of less importance on the global stage.
In 1985, America's share of global GDP was 33%. Today, it is just 24%.
Our nation is rapidly being deindustrialized and we are becoming deeply dependent on industrial production from other nations.
Did you know that the new World Trade Center that is being constructed on the site of the September 11, 2001 attacks is going to be made from German steel and Chinese glass?
That says a lot about where we are at as a country.
We have allowed so much of our industrial infrastructure to be exported to China where workers slave away in almost unbelievable conditions.
A reader named Rish recently described what things are like over there....
As a product developer I went to china and saw the way the factory workers lived and worked in person. 50$ a month is about right, but if you are a skilled quality control expert you might make as much as 150$. at least this was true about 2 years ago the last time I went. The barracks were pretty meager, bunk beds with just plywood, no mattresses, if you wanted you could go to a store just outside the factory gate and buy a thick comforter that they sell as a “mattress” .The only way the U.S. has been able to "thrive" during this deindustrialization is by borrowing gigantic amounts of money. But all of this borrowing is slowly but surely destroying the U.S. dollar, and we are getting closer to the point of absolute catastrophe.
It will be interesting to see how the next few years changes the face of the USA. Who knows? if the unemployment rate and lack of jobs keeps going and enough people become homeless, we might become the next Bangladesh, and people will be lining up of the 30 cents an hour corporate factory jobs, and living in barracks just like those…
Peter Schiff recently shook folks up when he talked about these issues during a recent interview on CNBC....
But it is not just the United States that is printing tons and tons of money. All of the major industrialized nations have been firing out gobs of currency. That is a huge reason why so many investors have been racing to get into hard assets recently.
Now Ben Bernanke and other top Federal Reserve officials have been dropping hints that more quantitative easing may be necessary.
Unfortunately, just like with any other addiction, once you give in a few times it becomes easier and easier to engage in destructive behavior. Now that the Fed has gotten a taste for quantitative easing it is going to be really hard to stop.
Nor can the Fed stop at this point. If they did it would be disastrous for the U.S. economy. But if the Fed continues on this reckless course it will make the eventual collapse of our economy even worse.
Under our current debt-based system there is no way out. The Federal Reserve can attempt to put off the inevitable for a while by pumping up the debt bubble even more, but at some point it is going to burst.
When that happens we are going to be facing a financial crisis which will blow what happened in 2008 completely out of the water.
So enjoy these good economic times while you still can. This is about as good as things are going to get from here on out.
Mind blowing speech by Robert Welch in 1958 predicting Insiders plans to...
If only people would have heard him and taken action at that time he gave the speech. He predicted it correctly, spot on.
Tuesday, March 1, 2011
QE3? Several Top Federal Reserve Officials Seem To Think That More Quantitative Easing Is Necessary
= An important article from the economic collapse blog
QE3? Several Top Federal Reserve Officials Seem To Think That More Quantitative Easing Is Necessary
The end of QE2 is still several months away and yet quite a few top Federal Reserve officials are already hinting that more quantitative easing may be necessary. Apparently the U.S. economy is not moving forward as rapidly as they would like. So it looks like "QE3" could be on the way. But did anyone out there actually believe that quantitative easing would come to a complete stop in June? Whether they call it "QE3" or something else entirely, the reality of the matter is that we have now come to a time when the Federal Reserve is going to be continually purchasing a significant percentage of all new U.S. government debt. This is essentially a gigantic Ponzi scheme, but sadly there is just not enough money in the rest of the world to be able to continue to feed the U.S. government's voracious appetite for debt. Right now Ben Bernanke and his cohorts are trying to break the news to us gently, but anyone with half a brain can see what is happening. The only way for the game to keep going is for the Federal Reserve to print lots more money, and that is going to be incredibly bad for the U.S. economy in the long run.
The other day James Bullard, President of the Federal Reserve Bank of St. Louis, made national headlines when he declared that Fed officials should "never say never" when it comes to QE3 and more quantitative easing. But the truth is that other Fed officials have been dropping public hints about the "need" for QE3 for several weeks now. Just consider the following quotes from top Federal Reserve officials....
Federal Reserve Chairman Ben Bernanke in response to a question about the potential for QE3 at the National Press Club....
QE3? Several Top Federal Reserve Officials Seem To Think That More Quantitative Easing Is Necessary
The end of QE2 is still several months away and yet quite a few top Federal Reserve officials are already hinting that more quantitative easing may be necessary. Apparently the U.S. economy is not moving forward as rapidly as they would like. So it looks like "QE3" could be on the way. But did anyone out there actually believe that quantitative easing would come to a complete stop in June? Whether they call it "QE3" or something else entirely, the reality of the matter is that we have now come to a time when the Federal Reserve is going to be continually purchasing a significant percentage of all new U.S. government debt. This is essentially a gigantic Ponzi scheme, but sadly there is just not enough money in the rest of the world to be able to continue to feed the U.S. government's voracious appetite for debt. Right now Ben Bernanke and his cohorts are trying to break the news to us gently, but anyone with half a brain can see what is happening. The only way for the game to keep going is for the Federal Reserve to print lots more money, and that is going to be incredibly bad for the U.S. economy in the long run.
The other day James Bullard, President of the Federal Reserve Bank of St. Louis, made national headlines when he declared that Fed officials should "never say never" when it comes to QE3 and more quantitative easing. But the truth is that other Fed officials have been dropping public hints about the "need" for QE3 for several weeks now. Just consider the following quotes from top Federal Reserve officials....
Federal Reserve Chairman Ben Bernanke in response to a question about the potential for QE3 at the National Press Club....
"In the end, we'll just ask the same questions. Where's the economy going, and what do various inflation indicator look like? We'll ask those questions. If unemployment is still too low, then we may continue. If we're moving towards full employment, then we won't need to stimulate more."
William Dudley, President of the Federal Reserve Bank of New York during a recent speech at New York University....
"The economy can be allowed to grow rapidly for quite some time before there is a real risk that shrinking slack will result in a rise in underlying inflation."James Bullard, President of the Federal Reserve Bank of St Louis during a recent speech at the Bowling Green Area Chamber of Commerce....
"The natural debate now is whether to complete the program, or to taper off to a somewhat lower level of asset purchases. Quantitative easing has been an effective tool, even while the policy rate is near zero. The economic outlook has improved since the program was announced."
Charles Evans, President of the Federal Reserve Bank of Chicago during a recent interview with The Financial Times....
"The message that comes out of what I think of as high-quality research on this subject is that policy ought to remain accommodative for really quite a while, even a while after conditions start to improve."So how in the world did things get to the point where the Federal Reserve feels forced to recklessly print gigantic piles of money?
Well, it didn't happen overnight. Back during the 1980s and 1990s there were many people that desperately tried to warn about what would happen if U.S. government debt was not brought under control.
Unfortunately, our politicians did not heed those warnings.
Today, the U.S. national debt has reached a grand total of $14,137,541,098,872.71. It is 14 times larger than it was just 30 years ago. It is the largest single debt in the history of the world.
So why don't our politicians just balance the budget now so that we don't keep having to borrow so much money?
Well, there are some huge problems. First of all, when you combine entitlement programs such as Social Security and Medicare with interest on the national debt, it comes to approximately 64 percent of all federal government spending.
But that is not the bad news.
In the years ahead, entitlement spending and interest on the national debt are both projected to absolutely explode.
We are rapidly approaching a time when spending on entitlement programs and interest on the national debt will be significantly greater than all of the revenue that the federal government brings in each year. All federal revenues will be spoken for even before a single penny is spent on defense, education, running the government or anything else.
Either entitlement programs are going to have to be seriously reformed or the U.S. government is going to have to come up with a massive amount of extra money from somewhere or the U.S. government is going to have to borrow increasingly large piles of money from someone.
Unfortunately, there are no easy solutions and most of our politicians are scared to death to touch entitlement programs because it will mean that they will lose votes.
But our entitlement programs were never meant to be as massive as they are today. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 American is on Medicaid.
Obviously something has to be done, because the debt that we are passing on to future generations is absolutely criminal.
For example, every single child born in America today inherits $45,000 in U.S. government debt.
Isn't that lovely?
Of course our liberal friends believe that the answer is just to raise taxes.
Oh really?
The truth is that our taxation system is deeply broken.
Small business owners and middle class Americans are being taxed into oblivion while those at the top of the food chain often pay no federal taxes whatsoever.
For example, did you know that Citigroup did not pay a dime of federal taxes in the third quarter? Meanwhile, their executives continue to bring in bonus packages worth millions.
Did you know that even though Boeing receives billions in federal subsidies every year and even though it has a bunch of juicy government contracts it did not pay a single penny in federal corporate income taxes from 2008 to 2010?
Did you know that while Exxon-Mobil did pay $15 billion in taxes in 2009, not a single penny went to the U.S. government? Meanwhile, their CEO brought in over 29 million dollars in total compensation that year.
You can find a lot more examples of this phenomenon right here.
Those at the top of the food chain are experts at avoiding federal taxes. So liberals can raise rates all they want but it won't do much good.
As I have written about previously, the truth is that approximately a third of all the wealth in the world is now held in "offshore" banks. The ultra-wealthy and the monolithic predator corporations that dominate the global economy don't mess around when it comes to paying taxes. They don't care if they aren't paying their "fair share". They simply know how to play the game and they laugh at all the rest of us.
Our entire system is broken beyond repair and needs to be reconstructed from the ground up.
But of course that simply is not going to happen.
So what can be done?
Not a whole heck of a lot.
The truth is that the U.S. economy is on the verge of a major collapse.
Marc Faber, the author of the Gloom, Boom and Doom report recently gave a speech in which he declared that the U.S. financial system is in such disastrous shape that only a "reboot" will be able to save it....
I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.But can we just "reboot" the system and expect things to go back to normal?
Of course not.
The truth is that when the rest of the world completely loses faith in the U.S. dollar and in U.S. Treasuries the dominoes are going to start to fall. Eventually we are going to see a financial panic that is going to make 2008 look like a Sunday picnic. Our economic system will massively implode as all of the gigantic mountains of debt and paper money collapse like a house of cards.
Right now the Federal Reserve is desperately trying to hold the system together by "papering over" all of the mistakes. But in the end it is not going to work. In fact, what we are witnessing now are the very early stages of hyperinflation. A lot of other nations in the past have thought that they could just print their way out of trouble, but many of those "experiments" ended in total disaster.
Marc Faber is certainly right about one thing - all of this money printing is going to give us substantial inflation to go along with the high unemployment that we already have. This is called "stagflation" and anyone that remembers the 1970s knows that it is not a lot of fun.
But the Federal Reserve seems absolutely determined to print more money. Fed officials are doing the same thing now that they did right before QE2. They are dropping hints about QE3 and they are trying to break it to us gently.
Well, it is about time that someone told the American people the truth. All of this money printing is going to end in disaster and so you had better get prepared.
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Monday, February 28, 2011
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Saturday, February 19, 2011
Why carry a gun ?
Read to the end.
PEOPLE ASK WHY?
Why Carry a Gun?
My old grandpa said to me 'Son, there comes a time in every man's life when he stops bustin' knuckles and starts bustin' caps and
usually it's when he becomes too old to take an ass whoopin.'
I don't carry a gun to kill people.
I carry a gun to keep from being killed.
I don't carry a gun to scare people.
I carry a gun because sometimes this world can be a scary place.
I don't carry a gun because I'm paranoid.
I carry a gun because there are real threats in the world..
I don't carry a gun because I'm evil.
I carry a gun because I have lived long enough to see the evil in the world.
I don't carry a gun because I hate the government.
I carry a gun because I understand the limitations of government.
I don't carry a gun because I'm angry.
I carry a gun so that I don't have to spend the rest of my life hating myself for failing to be prepared.
I don't carry a gun because I want to shoot someone.
I carry a gun because I want to die at a ripe old age in my bed, and not on a sidewalk somewhere tomorrow afternoon.
I don't carry a gun because I'm a cowboy.
I carry a gun because, when I die and go to heaven, I want to be a cowboy.
I don't carry a gun to make me feel like a man.
I carry a gun because men know how to take care of themselves and the ones they love.
I don't carry a gun because I feel inadequate.
I carry a gun because unarmed and facing three armed thugs, I am inadequate.
I don't carry a gun because I love it.
I carry a gun because I love life and the people who make it meaningful to me.
Police protection is an oxymoron.
Free citizens must protect themselves.
Police do not protect you from crime, they usually just investigate the crime after it happens and then call someone in to clean up the mess.
Personally, I carry a gun because I'm too young to die and too old to take an ass whoopin'.....author unknown (but obviously brilliant)
Why Carry a Gun?
My old grandpa said to me 'Son, there comes a time in every man's life when he stops bustin' knuckles and starts bustin' caps and
usually it's when he becomes too old to take an ass whoopin.'
I don't carry a gun to kill people.
I carry a gun to keep from being killed.
I don't carry a gun to scare people.
I carry a gun because sometimes this world can be a scary place.
I don't carry a gun because I'm paranoid.
I carry a gun because there are real threats in the world..
I don't carry a gun because I'm evil.
I carry a gun because I have lived long enough to see the evil in the world.
I don't carry a gun because I hate the government.
I carry a gun because I understand the limitations of government.
I don't carry a gun because I'm angry.
I carry a gun so that I don't have to spend the rest of my life hating myself for failing to be prepared.
I don't carry a gun because I want to shoot someone.
I carry a gun because I want to die at a ripe old age in my bed, and not on a sidewalk somewhere tomorrow afternoon.
I don't carry a gun because I'm a cowboy.
I carry a gun because, when I die and go to heaven, I want to be a cowboy.
I don't carry a gun to make me feel like a man.
I carry a gun because men know how to take care of themselves and the ones they love.
I don't carry a gun because I feel inadequate.
I carry a gun because unarmed and facing three armed thugs, I am inadequate.
I don't carry a gun because I love it.
I carry a gun because I love life and the people who make it meaningful to me.
Police protection is an oxymoron.
Free citizens must protect themselves.
Police do not protect you from crime, they usually just investigate the crime after it happens and then call someone in to clean up the mess.
Personally, I carry a gun because I'm too young to die and too old to take an ass whoopin'.....author unknown (but obviously brilliant)
**********************************************
A LITTLE GUN HISTORY
In 1929, the Soviet Union established gun control. From 1929 to 1953, about 20 million dissidents, unable to defend themselves, were rounded up and exterminated.
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In 1911, Turkey established gun control. From 1915 to 1917, 1.5 million Armenians, unable to defend themselves, were rounded up and exterminated.
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Germany established gun control in 1938 and from 1939 to 1945, a total of 13 million Jews and others who were unable to defend themselves were rounded up and exterminated.
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China established gun control in 1935. From 1948 to 1952, 20 million political dissidents, unable to defend themselves, were rounded up and exterminated.
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Guatemala established gun control in 1964. From 1964 to 1981, 100,000 Mayan Indians, unable to defend themselves, were rounded up and exterminated.
---- ------------- -------------
Uganda established gun control in 1970. From 1971 to 1979, 300,000 Christians, unable to defend themselves, were rounded up and exterminated.
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Cambodia established gun control in 1956. From 1975 to 1977, one million educated people, unable to defend themselves, were rounded up and exterminated.
-----------------------------
Defenseless people rounded up and exterminated in the 20th Century because of gun control: 56 million.
------------------------------
You won't see this data on the US evening news, or hear politicians disseminating this information.
Guns in the hands of honest citizens save lives and property and, yes, gun-control laws adversely affect only the law-abiding citizens.
Take note my fellow Americans, before it's too late!
The next time someone talks in favor of gun control, please remind them of this history lesson.
With guns, we are 'citizens'. Without them, we are 'subjects'.
During WW II the Japanese decided not to invade America because they knew most Americans were ARMED!
If you value your freedom, please spread this anti gun-control message to all of your friends.
The purpose of fighting is to win.
There is no possible victory in defense.
The sword is more important than the shield, and skill is more important than either.
The final weapon is the brain.
All else is supplemental.
SWITZERLAND ISSUES ALMOST EVERY HOUSEHOLD A GUN AND MALES ARE TRAINED FOR MILITIA SERVICE UNTIL AGE 30!
SWITZERLAND'S GOVERNMENT TRAINS EVERY ADULT THEY ISSUE A RIFLE.
SWITZERLAND HAS THE LOWEST GUN RELATED CRIME RATE OF ANY CIVILIZED COUNTRY IN THE WORLD!!!
IT'S A NO BRAINER!
DON'T LET OUR GOVERNMENT WASTE MILLIONS OF OUR TAX DOLLARS IN AN EFFORT TO MAKE ALL LAW ABIDING CITIZENS AN EASY TARGET.
I'm a firm believer in the 2nd Amendment!
If you are too, please forward.
Thursday, February 17, 2011
Monday, February 14, 2011
Wednesday, February 9, 2011
Friday, January 28, 2011
Thursday, January 27, 2011
Tuesday, January 25, 2011
Sunday, January 23, 2011
Obama misinforming the US Public about the Dollar and the Yuan
Obama Misinforming Public About U.S. Dollar and Yuan
President Obama's comments on Wednesday in a joint press conference with Chinese President Hu Jintao, misinformed the public about potential changes in foreign exchange rates and their effects on U.S. citizens. Obama on Wednesday said that he would like to see the Chinese yuan appreciate faster in value. While Hu indicated that China is committed to allowing the free market to better dictate the value of the yuan, Obama said China is implementing their steps to allow the yuan to appreciate "not as fast as we'd like."
For years, the U.S. has been criticizing China by calling them "currency manipulators". The fact is, the Federal Reserve is the real currency manipulator because their actions will soon lead to a U.S. Hyperinflationary Great Depression that destroys the lives of all Americans who aren't prepared for life with a worthless U.S. dollar. All China is doing is pegging the yuan to the U.S. dollar so that their product manufacturers and exporters can maintain some level of stability. However, the U.S. is using this as an excuse to explain its rapidly deteriorating export market.
Obama was correct when he explained to the world how China would benefit by having a stronger yuan. Obama understands perfectly how a stronger yuan would bring down prices for Chinese citizens and allow them to enjoy a much higher standard of living. In fact, NIA believes China could solve their current inflation crisis simply by allowing the yuan to appreciate alone.
China has seen the prices of many food items soar by 25% or more in recent months, which is horrific for a country where many of its citizens spend half of their income on food. While most mainstream economists on CNBC, Bloomberg, and FOX Business are quick to blame China's food inflation crisis on the weather, NIA believes the weather has very little to do with it. It seems like the weather is always the excuse every time food prices rise. Mainstream economists would have you believe that the world has been experiencing never-ending droughts and floods that continue to worsen each year.
NIA members know better than that. After all, we have the most educated membership base in the world. The truth is, China's food inflation crisis is coming as a direct result of the Federal Reserve's destructive quantitative easing and money printing policies, and China's willingness to keep the U.S. dollar artificially propped up out of fear that Americans will no longer be able to afford their exports. China is importing all of its food inflation from the U.S. and if President Obama gets his way, China will throw its food inflation right back into the faces of all U.S. citizens.
Imagine a food fight in school between American and Chinese kids with the American kids throwing their free National School Lunch Program (NSLP) meals (paid for by Chinese purchases of U.S. treasuries) at the Chinese kids while the Chinese kids sit there ignoring it trying to enjoy their own meals that they spent half of their income to buy. All the while, the American kids are antagonizing the Chinese kids, calling them currency manipulators and blaming their need for free NSLP lunches on China's currency peg (when the peg is actually preventing the American kids from starving). Sooner or later, not only will the Chinese kids throw the NSLP lunch remains back at the Americans, but they might become so disgusted (because they paid for the food being thrown at them) that they actually regurgitate their meals that they worked half of the day to be able to consume, into the American kids' faces.
If the Federal Reserve continues down the path it is currently on, not only will China allow the yuan to rise to a free market determined level, which will send China's food inflation crisis back to the U.S., but China is likely to dump their U.S. treasury holdings that they are currently hoarding. China's foreign exchange reserves rose by $199 billion last quarter (its largest quarterly gain in 15 years and 78% higher than analyst estimates of $112 billion) to a record $2.85 trillion for total growth in 2010 of 18.7%. Most likely, about 2/3 of these reserves are in U.S. dollars. Americans have been deceived by the U.S. government and the mainstream media into believing the U.S. economy is recovering, because the U.S. has been enjoying the benefits of inflation without the consequences of rising prices. When the U.S. bond bubble begins to burst and these trillions of dollars being hoarded come home to roost, inflation will become the primary concern of all Americans.
NIA finds it completely outrageous how Obama can be so honest with Chinese citizens about their benefits of having a stronger yuan, but then seconds later outright lies to the American public by saying that Americans would gain by having a stronger yuan as well. A stronger yuan by definition would mean a weaker U.S. dollar. It is insane for Obama to proclaim that having a stronger currency is good for China but bad for America. The rules of economics are the same in both countries.
As the Chinese see their purchasing power increase by having a stronger yuan, Americans will see their purchasing power decrease by having a weaker dollar. These simple economic principles are easy for any human being to understand, but nobody in the mainstream media is calling Obama out on it. The media completely accepts Obama's statements as the truth, without providing any warning to American citizens that Obama's desired change in foreign exchange rates will shift China's inflation crisis completely to the U.S.
On November 12th, NIA's President Gerard Adams warned Americans on FOX Business to beware of massive food inflation in early 2011. We are less than three weeks into the new year and massive food inflation is already here. SuperValu, the third-largest U.S. food retailer with 2,349 stores that operate under such names as Acme, Albertsons, Save-A-Lot, just reported that all of their major vendors have announced their intentions to pass along rising costs throughout the calendar year and the company will be raising prices on all food items by 3% to 14%. NIA's experience tells us that SuperValu is planning to increase prices on most goods by approximately 14%. Trust us, if SuperValu was expecting to increase prices by an average of only around 5%, they would have given an average instead of such a wide range. (By the way, SuperValu's stock crashed 16% on the news and one of NIA's top 10 predictions for 2011 was that U.S. retail stocks will decline after reporting lower profit margins.)
The SuperValu situation confirms that double-digit U.S. food price inflation is just about guaranteed to occur in 2011. We also expect to see double-digit price inflation this year in clothing, oil, gasoline, natural gas, and all of the most important things Americans need to live and survive. If the U.S. Bureau of Labor Statistics (BLS) somehow manages to report a CPI increase in 2011 of anything less than 5%, and the mainstream media continues to report the BLS's CPI numbers as the truth, any Americans who continue to listen to the mainstream media deserve to lose all of their purchasing power during hyperinflation.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
Thursday, January 20, 2011
Friday, January 14, 2011
Thursday, January 13, 2011
Saturday, January 8, 2011
Thursday, January 6, 2011
Wednesday, January 5, 2011
Another NIA prediction comes true...
Yesterday, NIA announced its top 10 predictions for 2011. Our top 10 predictions for 2011 come after our wildly successful top 10 predictions for 2010, which saw many of our predictions come true!
Perhaps our biggest long shot prediction for 2010, which didn't come true last year, just came true today (5 days late)! Paul Volcker just announced late this afternoon that he is stepping down from his role as Chairman of President Obama's Economic Recovery Advisory Board.
On December 21st, 2009, NIA released its top 10 predictions for 2010. Our #10 prediction for 2010 was, "Paul Volcker Resigns".
In this report, NIA said, "This may be a long shot but Paul Volcker, Chairman of President Obama's Economic Recovery Advisory Board, could become frustrated with the Obama administration and resign in 2010. Paul Volcker, as former Chairman of the Federal Reserve, was responsible for getting our economy out of the inflationary crisis of the 1970s by raising the federal funds rate up to a peak of 20%."
We went on to say, "With interest rates currently being held by the Federal Reserve at an artificially low level of 0%, we believe Paul Volcker must know that a currency crisis is coming that will make the inflation of the 1970s look miniscule. If Paul Volcker wants to preserve his reputation and legacy, he must leave the Obama administration, which is unlikely to seriously consider any of his advice."
We are the only organization in the world that made this prediction. In our opinion, there is a good chance that Mr. Volcker is a member of NIA and decided to step down 5 days after the end of 2010 on purpose. Most likely, he didn't want NIA's prediction to come true, so he stuck it out until a short time after the year was over.
We would like to take this opportunity to officially announce the launch of the new NIA blog! The NIA blog will be the Internet's best resource to check on a daily basis for all of the most important information about the U.S. economy and inflation.
Please check out our new blog immediately at: http://inflation.us/blog
We just posted some very important new information about food price inflation. NIA's outlook of massive food inflation in 2011 is already coming true. Despite the Federal Reserve claiming there is no inflation and the BLS reporting only 1.5% year-over-year food price inflation, there was a new very important report just released today that shows nominal food prices having just reached a new all time high! Be sure to check out our blog immediately for more info.
Please visit our blog at least once a day to be kept up to date with all of the information you need to know to survive and prosper during U.S. hyperinflation.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
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